Capitalization Enterprise System Theory

Author: Mao Zhenhua
Publisher:
Publish Date: 2001-04-01
Features: The author, Mao Zhenhua, uses the Western corporate theory that "the enterprise is a collection of contracts" as the starting point for his research. At the same time, he defines the reform of state-owned enterprises as resolving the relationship between the authority of the owner and contracts, achieving an organic unity of the two, and proposes the advocacy of establishing a capitalized corporate system. He regards the establishment of a capitalized corporate system as the goal of the reform of state-owned enterprises, rather than pursuing the establishment of a modern corporate system in a vague manner. According to the author's ideas, in a market economy, "the enterprise is essentially a capitalized enterprise, it is a collection of contracts between different owners and consumers, and at the same time it reflects the authority of the owner; at a certain point in time, it manifests as a set of contracts, and over a period of time, it appears as a re-collection of a collection of contracts." "Capitalization is the process by which capital continuously transforms into future income. Capital and equity are two aspects of a contract, and capitalization is an abstraction of the evolutionary process of corporate contracts." This is a dynamic adjustment process. The reform of state-owned enterprises is to "establish a capitalized corporate system and achieve the dynamic adjustment of the capital and equity structure." This book is my doctoral dissertation submitted in 1998 and approved for defense. The original plan was to make some adjustments and supplements before publication, but in this period, there have been many changes in the reform of state-owned enterprises and the capital market. It always feels that the views at any given point in time may not be able to respond satisfactorily to future questions. It might be better to keep it as is and preserve the relatively systematic thinking at that time. This might be a more responsible approach.