The Nature Of Property Right, Excess Labor And Firm Performance

State-owned enterprises established through "the confiscation of bureaucratic capital owned by the whole people after confiscating from bourgeois, take a lot of political goals and social responsibility in the pursuit of the state-owned assets. Among the political burdens, the most important one is the employment burden. Forced by the central and local government employment pressure, state-owned enterprises bear a heavy welfare of retired employees and redundant employees, thus creating large losses. Of course, under the influence of the government, the private sectors but also bear the pressure of employment (Robert A. Hart and James R. Malley,1996).However, with the difference from state-owned enterprises, China's non-state economy, especially private enterprises have grown under the marketization condition, on which the configuration of the basic factors of production completed by the laws of the market (Chen Zhao, Lu Ming,2003), when market demand changes, they will be able to independently adjust the number of employees. Especially, state-owned enterprises and private enterprises have been taking different staff policy in the financial crisis, which more fully reflects that state-owned enterprises and private enterprises are in different political environment respectively. Therefore, the soft constraint problem between them is incomparable.I have inquired into the scale of state-owned enterprise employees and redundant employees by this large sample of panel data regression during the financial crisis. At the same time on the point of the average wage of workers and the payroll, I have approached that the scale of the redundant employees and overall employees are how to influence the efficiency of state-owned enterprises and labor costs. Indeed, redundant employees of state-owned enterprises have been making dual effects to that. As an empirical research, the paper will follow the technical line from the literature review, theoretical analysis to empirical test and then to policy recommendations. To build the framework, this article is divided into five chapters.ChapterⅠ:With a historical perspective, the background and significance of the researches on this topic are summarized and described, the research issues and methods are discussed, the structure and framework are illustrated by graphs and possible innovations are discussed.ChapterⅡ:Literature Review. Relevant literatures are reviewed. They are described by. a line of academic research about the problem of redundant employees, which including the four aspects of domestic and foreign literature, hidden unemployment, organizational slack, human resources, redundant employees.ChapterⅢ:Theoretical Analysis on redundant employees and hypotheses. Theoretical Analysis has two parts. One is the relationship between property rights and the redundant employees, and another is the relationship between redundant employees and corporate performance. And four hypotheses were put forward by the above theory.ChapterⅣ:Empirical analysis and empirical conclusions. In this paper, I have done a large sample regression on 2006-2009 panel data of listed companies with STATA11.0 and EXCEL2003. Weed out invalid data and extreme values, and then do statistical analyses of experimental data including summary statistics and descriptive statistics, T test and regression analysis. Finally I obtained conclusions of this study.Chapter V:Policy recommendations, research limitations and future research prospects. Based on the conclusions, I propounded the feasibility policy recommendations. At the same time, through a deliberate defect analysis, this paper proposed the development of future research.Contribution of this article:First, nowadays less attention to the scale of state-owned enterprise employees and the impact of redundant employees on macro-economic environment is paid in the domestic and international articles.Standing on the shoulders of our predecessors, I researched the state-owned enterprises with redundant employees and the relationship between corporate performances with an environmental control variable of the financial crisis.Second, redundant human resources documents adopted more abundant research methods including case studies, field survey, archival research and normative research. However, most of the domestic literature concerning the redundant is normative study, only Xue yun Kui, Bai yun Xia (2008) and Chen xin yuan, Zeng Qing sheng (2006) used archival research. So, this paper featured archival research is an extension of redundant employees in the literature.Third, the discussion on the wage rate is limited to theoretical analysis with opposite conclusion in previous literature. In this paper, the average wage of workers as a variable is put into the regression analysis of large samples to verify the redundant employees wage rates of state-owned enterprises.The limitations of this article:Firstly, because of the limited knowledge, author selected a random effects model only on the basis of the economic significance and the characteristics of variables. We can not make the choice about panel data model on a more rigorous argument.Secondly, we studied the sample data for 2006-2009 and the year as the unit window. It is not accurately describe changes in the macroeconomic environment.Finally, this paper studied the problem of state-owned enterprise employees redundant in a short time window 2006-2009.thus, author Pay more attention to the redundant employees on short-term effects of state-owned enterprises. It is likely that the long-term effects have been ignored.