Redundancy of Chinese state-owned enterprises: A literature review
Song Tian, Liqiong Zhang
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.
Song Tian, Liqiong Zhang. Redundancy of Chinese state-owned enterprises: A literature review. International Journal of Multidisciplinary Research and Development, Volume 6, Issue 1, 2019, Pages 145-149