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The loss of state-owned assets and the company in transition economy governance

Author: NiJinXiang From: www.yourpaper.net Posted: 2007-11-21 05:58:47 Read:
Abstract: the property right of the state-owned enterprise reform in China caused a hitherto unknown argument, the loss of state-owned assets is a focus of this debate.This paper discusses the loss of assets of state-owned enterprises in the process of problems from the corporate governance of state-owned assets loss, that the objective existence of the situation, but must be a rational view of the problem.Specific to the perfection of corporate governance from two aspects of transactions of property right and regulation, to overcome the loss of state assets, improve the credibility of the reform of state-owned property rights.








An important feature of China's transition economy, the state-owned enterprise the realization form of ownership diversification, state-owned enterprise marketing behaviors.After the fourth plenary session fifteen, "catch put greatly small" policy, the form of ownership in state-owned medium and small enterprises rapid change, process retreats and the privatization of China's state-owned enterprise reform is in fact the country.Theory is generally believed that, for the partial privatization of state owned enterprises and restructuring will encourage efficient recombination, can improve the performance of the company.The privatization of state-owned enterprises in general there are a variety of ways, from the practice of medium and small state-owned enterprise of our country, more use of the MBO method.


In 2004, Professor Lang Xianping questioned Haier, TCL, Klinger M had been tree for the successful reform of typical "star enterprise" by using the property rights reform state-owned assets for the fuse, triggered a fierce debate between the property right reform of state-owned enterprises.The debate is over, how to treat the loss of state-owned assets and the MBO?Whether or not to continue the reform of property rights of state-owned enterprises?How to promote the reform of state-owned enterprises?


There is no doubt, no one would deny that the Chinese transition economy there is the loss of state-owned assets of enterprises property right reform, Lang Xianping said in the MBO process in the presence of divide up the state-owned asset problems abound.However, for the loss of state-owned assets have always been different understanding, to our country the reform of property rights and the loss of state-owned assets must hold a rational attitude, not to blame it on MBO itself and claims to terminate the property right reform of state-owned enterprises.





A, MBO are not standardized and the loss of state-owned assets


According to relevant statistics, the state-owned enterprises especially the small and medium-sized state-owned enterprises in the restructuring process, about half is realized in the form of MBO, with the other half way to foreign capital, private capital or other social legal person, the overall effect is concerned, there are 70% of the state-owned enterprises are the successful implementation of the restructuring, economic benefit significantly.


On the other hand, China's current reform of the small and medium-sized enterprise generally uses the method allows managers to hold large stocks, transparency and competition degree is very low, the lack of operating rules and procedures, to some extent, the management layer to carve up the property's gala dinner, did result in the loss of state-owned assets.This paper is divided into two situations: on the one hand, if the reform, better quality, management to use their information advantage in convenience, through various channels to underestimate the state-owned assets, embezzlement of state-owned assets.On the other hand, if poor management situation of MBO company, often taking net assets as the basis for, which leads to the management can control the amount of the total assets of great company with very little money.After obtaining the right of control, the management of large-scale company assets to private hands, to take money.This kind of situation in the company's assets as collateral to obtain bank loans to control system, more serious.This is the MBO in the absence of supervision of moral risk huge example after conversion, is actually caused by defects of corporate governance mechanisms, defects, is also an important reason for the criticism of Lang Xianping MBO.


Large-scale MBO also led to the unification of ownership and management rights, establish a modern enterprise system, and the state-owned enterprise of our country to promote joint-stock reform is not consistent, is a suboptimal governance structure and arrangement.MBO is a double-edged sword, must treat objectively.





Two, the internal governance mechanism and the loss of state-owned assets


In 2004, SKYWORTH chairman Huang Hongsheng, China Aviation Oil (Singapore) CEO Chen Jiulin, Yili Group Chairman Zheng Junhuai and other executives frequently happened in 2005 January, this just one month's time, the 10 executives Oriental venture, Zhejiang East, northeast high-speed, 9 listing Corporation and Lok ma.Internal corporate governance mechanism is not perfect, not only is the system reason of these executives of state-owned enterprises have fallen, but also greatly damage the operating performance of state-owned enterprises, resulting in dominant and recessive loss of state-owned assets.


China's state-owned capital is not in place leading to directors, managers can't the good faith management, from the perspective of corporate governance, the loss of state assets is mainly reflected in the following aspects:


First, the board of directors of the decision function and the managers of the executive function not really separate, chairman and general manager of an individual, the board of directors and managers of large area overlap phenomenon, caused by unclear responsibilities, work efficiency is low and the regulation is not in place, the internal governance system root failure is the loss of state-owned assets.This loss are the main performance, the illegal transfer of state-owned assets, internal management, such as common crime collusion.What is more, the high income of main business in part independent, by business leaders, employees of private investment company business, even by the parent company's resources, access to high profits is a worker especially in the senior management staff of the "welfare".This kind of "parasitic" will not only cause the loss of state-owned assets and huge implicit, will produce official corruption and economic crime because of the unregulated.


Second, part of the state-owned enterprises and the government (controlling shareholder) has strong dependence of the major decision-making enterprises, and leaders appointed dominated by the government more, features lead to management behavior is attached and administration of the.Government officials have the right to choose, but the wrong choice and responsibility for the consequences, not really have the enthusiasm to select those most appropriate agent.It also caused the loss of state-owned assets.


Third, the ownership structure is not reasonable, state-owned shares "alone big", resulting in "outside person inside", exacerbated by "insider control" problem.At the same time, low salary level of state-owned enterprises, and form a single rigid, difficult to produce the ideal incentive effect.Eventually have two consequences: one is the agents engage in malpractices for selfish ends, increase income and consumption, "actively by state-owned enterprises"; two is not embezzle state-owned assets, but the loss of business enthusiasm, "negative down state-owned enterprises".The management of poor management, creates the state asset devaluation and loss.


The reform of the state-owned Enterprise Inc governance in recent years has made great achievements, but on the whole, the corporate governance of the state-owned enterprises is still not "the shape of the god".If the moderate loss of state-owned assets as the reform of the state-owned enterprises must pay the cost, then the current amount of loss of the state-owned assets is a direct result of imperfect corporate governance caused by.

three, specification of transactions of property right, perfecting the corporate governance


The loss of state-owned assets of weakening the credibility of the reform, social justice, also increased social instability, it is necessary to take effective measures to prevent.Take measures from the following two aspects, will effectively stop the loss of state-owned assets.


First, standardize transactions of property right, to eliminate the problem of property right transaction price setting.Transactions of property rights lack of publicity and non competition is the result of the state-owned enterprise property right transaction process China has important reason for loss of assets, we must standardize transactions of property right.To be specific: (1) improve the asset appraisal regulations, standardize assets evaluation procedure and system, strictly enforce the law, strengthen the supervision of assets appraisal, ensure the state-owned assets value accurately, ensure that do not occur in the process of assets evaluation of the loss of state-owned assets; (2) open the transfer of state-owned assets, auction through the establishment of state-owned assets system, the sale of state assets of open and transparent information, to avoid the transfer of state-owned assets of the "covert operation", looking for state-owned asset prices in the market, reduce
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