Research To Board-centred Governance Model Of Dongguang Group

State-owned enterprises (SOE) are the mainstay of national economics.And the reform of SOE is a central part of national economic system reform.Since90’, more and more specialists and scholars realized that onlyinstitutional innovation could carry a deep forward of the SOE reform,which requires the modern enterprise system to be established in SOE. Andthe board-cantered corporation is just the main features of this system.Jilin Dongguang Group seizes the development opportunity in this SOEreform context, through a series of reform measures, now become a largecivil-military integration type enterprise supported by both China NorthIndustries Group Corporation (CNGC) and the government of Jilin Province.Now Dongguang Group enters a golden development time, but also acritical time of institutional innovation.The level of governance limits the corporation growth. Main idea ofthis article is to analysis the board-cantered governance model inDongguang Group, to provide the theoretical basis for its governancestructure and mechanisms, and the most important, to find a appropriate wayfor Dongguang Group to fit its style.In order to point out the purpose and importance of this research, theintroduction part of paper is about the background of the SOE reform inChina and the significance to learn from all kinds of way to govern SOE in different countries.The body of paper is divided by two parts-“governance andperformance”. The “governance” part first expounds the necessity for settingup the board-centered governance pattern by analyzing the SOE nature andthe influence factors from inside and outside. What we talk aboutgovernance is relatively broader, includes inner governance and outergovernance. Here we mainly focus on the inner governance structure andmechanisms built in Dongguang Group.Performance is the outward expression of corporation governance. Soin the third part, we set up a model of inspire which is mainly constituted bygovernance, performance, and payment. Through the analysis of the threefactors we found that performance is the basis of the other two. Soestablishing the performance evaluation system which includes boardevaluation and manager evaluation is the most important and urgent affairs,especially for improving the board evaluation system.In the end, we conclude the experience and shortage about theboard-centered governance pattern in Dongguang Group make someadvices.