Contractual Analysis of Corporate Governance: A Study Based on Enterprise Cooperation Efficiency

Author: Chen Chiping
Publisher:
Publish Date: 2006-04-01
Features: The enterprise is an organic whole formed by the owners of different elements such as capital, labor, management, and technology, connected through contracts. The fundamental reason for the existence and development of the enterprise lies in the ability of the owners of these elements to cooperate and create cooperative surplus. Therefore, the creation and distribution of cooperative surplus are the core issues of the enterprise. The goal of corporate governance is to promote the transformation of non-cooperative games among the owners of these elements into cooperative games, thereby enhancing the efficiency of enterprise cooperation. Entrepreneurs are the central contracting parties in the enterprise contract, coordinators and organizers of various elements, and their basic function is to drive the creation of cooperative surplus. The cooperation between entrepreneurs and investors is a necessary condition for the creation of cooperative surplus, the cooperation between entrepreneurs and laborers is the core content of cooperative surplus creation, and the institutional environment is the guarantee for the realization of enterprise cooperative efficiency. This book elaborates on the corporate governance mechanisms from the perspective of contracts, which can be divided into two aspects: governance of clearly defined contractual relationships and flexible governance. For the governance of clearly defined contractual relationships, governance efficiency lies in the effective fulfillment of contracts; for flexible governance, governance efficiency mainly lies in the reasonable allocation of residual rights. The organic combination of the two constitutes the foundation of corporate governance efficiency.