International Journal of Multidisciplinary Research and Development


E- ISSN: 2349-4182
P- ISSN: 2349-5979

Vol. 6, Issue 1 (2019)

Redundancy of Chinese state-owned enterprises: A literature review

Author(s): Song Tian, Liqiong Zhang
Abstract: During the process of pushing forward the reform of Chinese state-owned enterprise, one of the most important problems is how to solve the redundancy in Chinese state-owned enterprises. By reviewing the literature at home and abroad, this paper found that political interference result in redundancy in Chinese state-owned enterprises. The ways of political intervention includes the state-owned controlling shareholders, the governmental departments and the grass-roots communist party organizations in state-owned enterprises. Redundancy not only reduces the performance of state-owned enterprises, but also significantly increase the agency costs of state-owned enterprise. On the basis of summarizing the existing literature, this paper points out several issues that may need to be paid attention to in the future.
Pages: 145-149  |  326 Views  70 Downloads
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