Study On The Property Right System Factor Affecting The Efficiency Of A Private Enterprise

Private enterprise is the important power of market economy during Chinese economic reform. Familial enterprise is prevalent. All those enterprises are in the competitive circumstance, so they are more energetic. We study them just because they are now going in a declining trend after rapid expanding abnormally. Suppose the private sectors were still in a closed economic situation, we think the most important reason that affects the efficiency and success of an enterprise is its inner factor. Among those inner factors, we know the property right system is the foundation of enterprise system, so the property right system is the key to influence a company either in its positive way or just the opposite. In this thesis, we collect a great deal of datum and apply regression analysis in order to prove the property right system is interrelated with outstanding achievement. When familial enterprise arranges its property right system, there are two problems that always occur, the one is that one share always takes the majority; the other is the condensation of ownership together with enterprise management. The biggest shareholder takes the biggest share and also controls the management of the enterprise. In the regression analysis we have proved that the more serious these two problems are, the worse the efficiency and management of enterprise would be. If we want to solve single big share problem, a appropriate limitation set for single big share is a must. In this article through analysis we set a model to calculate the percentage of this limitation and further in order to set a reasonable allocation for percentage of sharing. For private enterprises, if they want to develop fast constantly in a healthy way, the modern enterprise system must be introduced into its inner management and gradually realize the separation of enterprise' ownership from enterprise normal management and also set up a adequate agency system.