Analysis On Corporate Governance Problems Of Non-governmental Enterprises In China

With the constant development and deepening of China's reform, non-governmental enterprises have started to rise in China, and become an important force in China's national economic development and promote the reform of the market economy one of the main engine. Thanks to the flexible operation mode, non-governmental enterprises have shown strong adaptability. The non-governmental enterprises become leading factor progressively in the course of development of our country's economy, which also are an important support of the fiscal revenues.Since the reform opening up, China's non-governmental enterprises have made encouraging progress. However, in general, non-governmental enterprises still have encountered many problems in the development, such as treatment of non-nationals, small scale, backwardness of technology, similar industrial structure, low-qualities of entrepreneurs, and irregular of corporate governance. This paper asserts that the scales of most non-governmental enterprises are small in the early stages of development and Enterprise owners are actually enterprise operators. In such cases, the corporate governance is not existent. But with the development of business and continued expansion of the scale of operation, the business of entrepreneurs will beyond the capacity of the capacity business owners. In this case, enterprises need attract talent, separate the ownership from managerial ownership gradually, and have to start considering the issue of corporate governance.The purpose of this paper is to analysis that how to solve the problem for the corporate governance of non-governmental enterprises in our country. Then, by analyzing current existing problems with a basic theoretical framework, it give us strategies to improve the corporate governance of non-governmental enterprises, thus the non-governmental enterprise can be stronger than before. In this way, this paper can provide some guidance to our non-governmental enterprise.By using a basic theoretical framework of corporate governance, the paper analysis on corporate governance problems of non-governmental enterprise in china. This theoretical framework includes property rights theory, principal——agent theory, basic elements of corporate governance, and the achievement mechanism of corporate governance, etc. Property rights theory is the basic of corporate governance. Together with the clarity of property rights, an enterprise can establish the modern corporate governance structure. The background of the...