Research On Corporate Governance Of China Jushi CO.,LTD. In The Context Of Mixed Ownership Reform

As the core of the reform, the corporate governance of state-owned enterprises have being troubled by some long-term problems and bottlenecks, which restricting the process of SOE reform and development. The reason is that there still being controversy and bondage on the theoretical and practical direction of SOE reform in the superstructure. Third Plenary Session of the18th CPC Central Committee announced to focus on developing mixed-ownership economy as an important direction of the SOE reform, which expanding theoretical and practical space of corporate governance. In the context of mixed-ownership reform, the thesis aims to research institutional arrangements and implementation of the SOE corporate governance, and propose available program recommendations to improve corporate governance.The first part, the thesis re-classifies Corporate Governance Theory, Principal-Agent Theory, Theory of Modern Property Ownership and other domestic and foreign related research on corporate governance. And then, the thesis builds the theoretical framework to support the comparative analysis and case studies.The second part, from three aspects such as generation conditions, the main features, effectiveness evaluation, the thesis studies comparatively on US and German corporate governance, which are mainstream in the world at present. Resultantly, the experience of different governance modes is summarized to benefit the SOE corporate governance.The third part, this thesis proposes a framework program to improve SOE corporate governance in in the context of mixed ownership reform. Moreover, the thesis analyzes and evaluates the corporate governance of China Jushi CO.,LTD.,——a state-owned holding companies, as a case study. In this case study, analysis and evaluation covers the ownership structure, board of directors system of board of supervisors system and managers system.As a conclusion, this paper presents principles and applicatory recommendations to improve SOE corporate governance in the context of mixed ownership reform. Firstly, SOE should build polybasic, balanced ownership structure to achieve scientific decision-making. The ownership in place would be helpful to achieve effective supervision of the agents and avoid internal control. Secondly, SOE should establish a system of board which being dominated by outside directors. As the core in the corporate governance structure, this system of the board would be strengthened in terms of organizational structure, operation mechanism, external resources, legal environment. Thirdly, a supervisory system that balancing among different stakeholder should be established to enhance the role of internal oversight. Fourthly, managerial ownership and incentive policies can reduce conflicts of interest between principal and agent to achieve unity of residual claim and residual control. Fifthly, we should improve external market environment which centered on the securities market in the market mechanism, the regulatory system, quality of participants and other aspects. Specifically, we should cultivate a mature, qualified institutional investors, creditors and other stakeholders to participate in the corporate governance, providing strong external support for the state-owned enterprises to improve their corporate governance.In addition, this thesis has the following innovations. First of all, this thesis breaks the constraints of retaining absolute control of state-owned capital, and propose corporate governance scheme based on pluralistic, balanced ownership structure under the new policy context. The scheme is in line with the modern enterprise system. Furthermore, the corporate governance improvement program is summarized through case analysis. As a result, the improvement program in line with the overall direction of reform, has strong feasibility and operability.