There are two opposing views over the necessity of privatization for SOEs. While some believe that privatization is the only solution to SOE inefficiency, others contend that privatization will lead to serious loss of...There are two opposing views over the necessity of privatization for SOEs. While some believe that privatization is the only solution to SOE inefficiency, others contend that privatization will lead to serious loss of state assets without resolving the problem. This paper examined how performance evaluation system contributed to the innovation and profitability of central SOEs after the implementation of the revised Interim Measures for Assessment of the Operational Performance of Persons in Charge of Central Enterprises in 2009. Using this revision as a natural experiment, this paper conducted a difference-indifference analysis and discovered a significant improvement in the innovation of central SOEs after the implementation of the new policy as compared with private firms not affected by this system. Moreover, the revised performance evaluation system significantly improved the marginal contribution of innovation to corporate value. The above test result indicates that SOEs may become more efficient solely by altering executive incentives without privatization. In this sense, privatization may not be the only solution to SOE inefficiency. This paper offers theoretical insights on the controversies regarding SOE privatization and helps enrich relevant literature on corporate incentives and innovation.展开更多
The advent of modern management system separated business owners and managers, resulting that many business owners no longer involve in the operation and management, but employ a specialized management staff to undert...The advent of modern management system separated business owners and managers, resulting that many business owners no longer involve in the operation and management, but employ a specialized management staff to undertake responsibilities of decision-making and business operations. Under the conditions of separation of ownership, the pay given to managers should be linked with their performance. Therefore, it is extremely important to establish a scientific and effective performance evaluation system for managers. Many companies began to try to establish short-term and long-term incentive plan for managers. The purpose is to through the introduction of a new payroll system promote the behavior of managers remaining consistent with corporate benefits. But the real realization of the plan relies on running of performance evaluation system. Only scientific and fair assessment of manager performance can we implement various salary system on only reliable basis, which is the key importance for the manager performance evaluation.展开更多
基金supported by the National Natural Science Foundation of China(Grant No.:71172205,71372126,71502161,71572133 and 71672134)the Humanities and Social Science Project of the Ministry of Education(Grant No.:15YJA630057)
文摘There are two opposing views over the necessity of privatization for SOEs. While some believe that privatization is the only solution to SOE inefficiency, others contend that privatization will lead to serious loss of state assets without resolving the problem. This paper examined how performance evaluation system contributed to the innovation and profitability of central SOEs after the implementation of the revised Interim Measures for Assessment of the Operational Performance of Persons in Charge of Central Enterprises in 2009. Using this revision as a natural experiment, this paper conducted a difference-indifference analysis and discovered a significant improvement in the innovation of central SOEs after the implementation of the new policy as compared with private firms not affected by this system. Moreover, the revised performance evaluation system significantly improved the marginal contribution of innovation to corporate value. The above test result indicates that SOEs may become more efficient solely by altering executive incentives without privatization. In this sense, privatization may not be the only solution to SOE inefficiency. This paper offers theoretical insights on the controversies regarding SOE privatization and helps enrich relevant literature on corporate incentives and innovation.
文摘The advent of modern management system separated business owners and managers, resulting that many business owners no longer involve in the operation and management, but employ a specialized management staff to undertake responsibilities of decision-making and business operations. Under the conditions of separation of ownership, the pay given to managers should be linked with their performance. Therefore, it is extremely important to establish a scientific and effective performance evaluation system for managers. Many companies began to try to establish short-term and long-term incentive plan for managers. The purpose is to through the introduction of a new payroll system promote the behavior of managers remaining consistent with corporate benefits. But the real realization of the plan relies on running of performance evaluation system. Only scientific and fair assessment of manager performance can we implement various salary system on only reliable basis, which is the key importance for the manager performance evaluation.
