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From the Administrative Model to the Economic Model

Author: YiHua
Tutor: XiongHaiBin
School: Hunan Normal University
Course: Political Economics
Keywords: administrative governance economic governance insiders control agency problem residual claim and residual rights of control agency right of State-Owned share
CLC: F270
Type: Master's thesis
Year: 2004
Downloads: 150
Quote: 0
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Abstract


The dissertation argues that the corporate governance must focus heavily on the transition from the Administrative Model to the Economic Model. Under the traditional planned economic system the governance of SOE is characteristics of the typical administrative model, which fails to match the development of the economic reform .The most effective way to achieve the great strategic goal, I.e.a "xiao kang" (comparatively well-off) society, proposed in the 16th National Congress of the CPC, is to develop diverse economic forms of public ownership and promote the rapid growth of SOE. Therefore, it is a subject of both theoretical significance and pratical instruction to study thoroughly and deeply the corporate governance model in the transitional period and establish the economic model. Based on such subjects in Modern Economics and Management as the institutional change theory, principal-agent theory and the business management theory, the dissertation deeply examines the main features, causes and consequences of the administrative model. And the author holds that the way out of the reform of SOE is to establish modern enterprises institution, the core of which is to shape the corporate governance in line with the economic model. As we know the economic model is based on the institution of shareholders control. It entails the below factors:<1>n the premise of corporate institution. <2>ased on the shareholders controls - oriented property rights <3>eveloped market system .<4>he perfect agency right of shareholder .

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CLC: > Economic > Economic planning and management > Enterprise economy > Economic theory and methods
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