China's State-owned Listed Companies' Governance Structure

The essence of corporate governance is about the power settlement and benefit allocation. The core of corporate governance is a whole set of corporate power settlement, division of responsibility and constraint mechanisms to protect stakeholders including stockholders as the main body in the frame of law and regulations. The reasonability of this kind of settlement of obligation, authority and benefit is one of the most important determinants of corporate performance. For this reason, many countries consider establishing a good structure of corporate governance as an important method for strengthening corporate competitiveness.During the 7 years since China joined WTO, the structure of China' s corporate governance has been developing and has gradually been improved. Although the basic frame had been already established, it is not standardized. China' s structure still has a wide gap in contrast to that of the mature corporate governance of the west. With the reform developing, problems gradually emerge from the fundamental systems in corporate governance, and the reform in corporate governance turns into a focus of the reform. Substantial evidence shows that excellent structure of corporate governance is a requisite for China' s state-owned enterprises to survive and develop in the tough worldwide economic competition, and is the key to the success of the reform of China' s state-owned enterprises.Through the research on the relevant theories of the structure of corporate governance, this paper analyzes the problems arising from the present reform of China' s state-owned enterprises: the structure of stock right is unreasonable, insiders control enterprises, motivation systems are deficient, market monitor is weak, and so forth. The paper combines a comparative study into the structure of corporate governance of the western developed countries to discuss how to optimize the structure of corporate governance in China' s state-owned enterprises from two sides-internal governance and external governance.