Rethinking The Principal-agent Relationship Problem Of Chinese State-owned Enterprises

The state-owned enterprise (SOE) is the main carrier of domestic capitalas well as it is also a significant form of existence of these capital. Thestate-owned enterprise of China is a core region of economic reform, and themodern economic conflict has been focused on it. With the economic reformdevelopment, there are lots of issues which exist in the principal-agentrelationship of state-owned companies should be resolved imminently.Especially, the initial principal (Person) cannot obtain corresponding rightsand channels to supervise the actual principal (The Government) effectively atpresent. In addition, as the real master of state-owned enterprises, people didnot enjoy the achievement of companies`development.Through linking theory with practice, this article discusses some relevanttheories about principal-agent problems of state-owned enterprises; in addition,the historical background and the evolution process of the principal-agentproblems of state-owned companies are analyzed by stages. Moreover, itillustrates what kind of significances of improving the principal-agentrelationship of our state-owned companies by combining the developmentsituation of foreign state-owned enterprises. By making the principal-agentrelationship of the state-owned company as a research object as well as thewestern theory of property rights, principal-agent theory and the theory ofMarxist share system as the theoretical cornerstone, this article based onanalyzing the evolution process of principal-agent relationship of ourstate-owned enterprises and linking theory with practice to analyze significant problems of principal-agent relationship in state-owned companies and thecauses of these problems. At the same time, the corresponding reformmeasures are presented. This article lay particular stress on discussingstate-owned companies should display the socialist property and reflect thebenefit of people, which based on the real situation of our state-ownedcompanies’ principal-agent. In addition, it emphasizes the method to enhancethe supervision of people on state-owned companies`principal-agent,Proposed a " the supervision of people---a special operation and managementof state assets agency---the SOE," the new chain to simplify the agency leveland also to underline institutional innovation and creation conditions togradually improve the supervision of people on corporation management andincome distribution of state-owned enterprises.