On The Entrepreneur Property Rights

The property rights is one of the core issues in the research on market economy, clearly adscription and definition of property rights is the precondition for optimization in resources collocation. Entrepreneurs are scarce resources in market economy and compulsory forces for promoting the development of the economy, to realize optimal collocation of entrepreneur property rights so as to take their initiative and efforts, we must have a clear definition of property rights. The main reason for lack of efficiency in our state-owned companies is the principal lack motivation and ability in supervision, and lack efficient corporate governance structure under the condition of no separation of the government and enterprises. The main characteristic of state-owned corporation reform since 1979 is that residual claim right and residual rights of control are transferring from the government to the corporations. How to settle the relationship between residual claim right and residual rights of control and design incentive and constraint mechanism so as to settle the inefficiency of our state-owned companies in our socialist construction practices is our initiative and end-result in corporate reform or even economic reform. The reform of own state-owned companies must have the clearly definition of property rights.The entrepreneurial human resources capital is heterogeneous and the soul of innovation in firms, it has become the scarcest resources in knowledge economy era and most initiative factor in modern economic growth, it has the feature of increasing marginal return. The entrepreneurial human resources capital needs incentives but not compression. If the entrepreneurial property rights get no protection, the entrepreneurs will hide his entrepreneurial ability for protection. Hence we must acknowledge entrepreneurial property rights and implement them with efforts. So this paper does a systematic research on entrepreneurial property rights on the basis of domestic and foreign researches combined with our state-owned firms reform practices. First of all, this paper gives a detailed description of formation of the entrepreneurial property rights from the perspective of game theory, and then analysis the two representations of the entrepreneurial property rights i.e. stocks option and management purchase, and lastly combined with the practices of the reform our state-owned firms ,our conclusion is that we should build a corporate common governance structure with entrepreneurial property rights as the main body.