Research On The Rent-seeking Activities Of Senior Executives In State-owned Enterprises From Internal Control Perspective

With the astounding and rapid development of Chinese economy, the healthy operation of state owned firms are crucial to the whole economy, the power abuse or rent-seeking problem among the executives of national enterprises have caught overwhelming attention in theory and in practice. The government supervision over national enterprises is one of the major tools to adjust the market economy, so government should pay more attention to it and take well advantage of it, as a result of which, it can effectively reduce the possibility of market failure. At present, if take the consideration of right-belonging relationship of Chinese national enterprises, we may find that state-owned firms work as the agent of government,they have plenty of opportunities to abuse the power that government rendered. Generally speaking, the power-renting behavior can bring great interests, in addition, there are some regulatory loopholes, so some executives even ignore the common moral principles to gain illegal interests. They increase the cost of running national companies and waste many public resources. Therefore, the author try to make a detailed and in-depth analysis and research on the power-renting behavior from the internal control perspective.In this article, the writer mainly uses literature summary and individual analysis methods to do some research on the power abuse of executives of state-owned firms in china. Besides,from the internal control perspective, the writer put forward effective measures to prevent and curb the power-renting or power abuse behavior according to the five elements of COSO internal control index. Specific speaking, firstly, in order to clean up the internal environment,the writer suggests that we should strengthen ethic and moral education among the senior executives and the general staffs, so as to improve their professional qualities, in addition, we should pay more attention to the improvement of human resources system and the distribution of rights and obligations. In relation to the insufficient risk assessment, the author put forward the state-owned firms should strengthen their awareness of the risk management. As to the inefficient implementation problem, in other words, the results of implementation is not satisfied, the writer suggests that the units should guarantee the separation of incompatible positions, establish and improve the examination and approve system, strict the budget management. For the problem of invalid of internal supervision, the author proposes that we should improve the supervision system and enhance the reliability of the supervision over the senior executives. As to the poor information exchange and communication both in internaland external, the writer proposes to establish an effective communication system to strengthen the information communication and share. Above all, the author hold the idea that we should spare no efforts to improve the internal control system, only in this way can we fundamentally restrain and eliminate the power abuse or power-renting behavior of senior executives in state-owned firms.