Study On The Improvement Of Corporate Governance Structure Of Gongwang Corporation

The reform of the state-owned enterprises in China has proved that their internal governance structure is not perfect and their governance mechanism is severely distorted,both of which have greatly influenced their own governance performance and operating results,and postponed the establishment of modem enterprise system.Therefore,the establishment and improvement of corporate governance structure of state-owned enterprises is not only an important theoretical issue,but also an urgent practical problem.This paper mainly studies the improvement of the governance structure of Gongwang Corporation,based on the corporate governance theory of western countries and corporate governance principles of Singapore' s state-owned investment companies.At the same time,the author applies a variety of macro theories,it discusses about how a state-owned investment company can efficiently and effectively supervise its invested companies,and it also provides a framework of contributor's management mode.The results of this research show that there are five main problems of the governance structure of Gongwang Corporation:the formalization of decision-making procedures,the imbalance of power allocation,the weakness of supervision mechanism,and unreasonable incentive policy,and the rigid management system of junior employees.This paper finally proposes following strategies to improve the Gongwang Corporation.Firstly,the shareholding structure should be optimized.Secondly,shareholders need to strengthen the supervision and control of company's operation.Thirdly,the board of directors should play a more important role.Fourthly,the board of supervisors is supposed to perform their functions.Finally,the company should optimize the system of human resources management.All these measures will help to clarify the relationship between the shareholders and the board of directors,reduce the operating costs,and enhance the enterprise's execution capacity.The implementation of these measures relies on the development of the enterprise's standard system,organizational structure and corporate culture,with which the enterprises can clarify the principal-agent relationship,improve the working efficiency of the board of directors and the board of supervisors,and finally make their internal governance structure more reasonable.These measures of improving corporate governance structure can not only help Gongwang Corporation to promote its performance,but also provide references for other large companies,which tent to search for innovative ways to systemize,standardize and refine their foreign investment management.In this thesis,the author attempts to seek scientific and reasonable methods to help improving corporate performance,and meanwhile hope it could be valuable for other researchers.