Study Of State-owned Enterprises Incentive For Managers

At the end of 1978, China initiated the reform of state-owned enterprises. After more than 20 years, low efficiency, the problem of SOEs, has not been resolved. As the reforme goes further, people gradually realized that a fundamental reason of low efficiency of SOEs is the lack of effective incentive-restriction mechanism to top management. Therefore, it is urgent to establish a set of effective principle system which is based on the characteristics of China and SOEs. This dissertation which uses existed result as reference, and makes a research on the incentive-restriction issue of SOEs is divided into four parts:In the first part, the dissertation summarizes the background the dissertation bases on and explains the importance of establishing the incentive-restriction of SOEs by listing data. Meanwhile, it comments relevant international principles. Then, it defines three concepts—the scope of top management, the type of enterprises, and the form of incentive-restriction.In the second part, the dissertation analyzes the current situation of incentive-restriction mechanism of SOEs, finds out improper points such as low salaries, simple incentive method, the lack of risk compensation, improper psychological incentive, low restriction power of market, etc. and analyzes the reasons in order to provide practical fundament and basis. No matter incentive mechanism or restriction mechanism, our government should pay great efforts to perfect it.In the third part, the dissertation introduces two typical incentive-restriction mechanisms, that is, American model and Japanese model. It also analyzes the difference of these two models. Although these they play an effective role in their country respectively, the dissertation states that China should not copy any of them, but establish a mechanism which is suitable for herself.In the fourth part, based on the second and third part in which the dissertation analyzes the situation of China's SOE and compares the international models, the dissertation raises specific and practical principles and ideas for the reform of incentive-restriction of top management of SOEs.