Corporate Governance Environment Influence On Corporate Efficiency

Among the factors effecting the corporate efficiency, main stream economists regard that property right is the most important one. This paper points out that in the long-term point of view, corporate governance environment plays the most important role in the corporate efficiency, and property rights is a minor factor. The view is demonstrated from two aspects: one is government governance structure and the other is market competition. The success of Singapore state-owned enterprises proves the conclusion which guides our policy for our reform of the state-owned enterprises. To reach the object of reform, we must cultivate healthy competitive market matched with the reform of politics system. According to the government governance model of this paper, to establish a government with limited power can restrict government action and solve many questions existing in the enterprise. If only changing the ownership of the enterprises, many privatized enterprises will deeply rely on power to get the competition advantage as we observe.Part one introduces the relationship between corporate governance environment and corporate governance structure. We discuss the matter in two aspects: the existing questions of two different types of enterprises in the same environment and in the different environment.Part two analyses the politics environment and establishes government action-right property model.Part three analyses the market competition and establishes the model of relationship during the right-property, competition, governance system and performance.Part four describes the success of Singapore State-owned Enterprises.Part five summarizes the conclusions: the reform of right property of state-owned enterprises is not the core. Many questions existing in our enterprises owe to the maladjustment of politics system and market system and the imperfection of market competition. This maladjustment and the imperfection causes the non-standard action of private enterprise and distorts enterprise of action. So this paper suggests the perfection of...