From The Case Of "east Pot Stock Incentive And Restraint Mechanisms Of The State-owned Enterprise

Bringing the operators of an enterprise into active play is a key to its developing. The operators are in a leading and directing position, and they are the decision makers of an enterprise. The levels of their competence and the extent they give frill play to their enthusiasm, directly affect an enterprise's development and its workers?profits. It is an important topic that we are facing how to bring them into full play and what incentive measures shall be adopted. Here and now, the incentive measures which many state enterprises adopt to the operators are relatively simple-the biggest incentive was "advancing in rank and position" which hardly aroused their intrinsic motivation to pursue benefits by every possible means. So the "59-years-old phenomenon"to converse and transfer the enterprise property are becoming increasingly prominent.The state enterprises of China adopt principal-agent system, and the operators are entrusted by the state through assignment or appointment. As such, in those enterprises which a corporation system reform is conducted, the restraints to the agent are not perfect and effective, resulting that the agent behaviors are of short term and even more, the agent does not operate the properties of the state and other stockholders according to their wishes. The lossof the state property is serious. Therefore, in those companies which adopt agency system, effective restraint mechanism must be established.By using the stock corruption case of Dongfang Boiler Group Company Limited which shocked the whole country as an example, and under the direction of the agency theory and the man抯 nature theory, this dissertation analyzes the incentive and restraint mechanisms of the state enterprise operators in various sides, and compares them with the practices of western developed countries, affirming the achievements and finding out the gaps, so as to probe an effective approach for the incentive and restraint of the state enterprise operators.