New Perspectives on Enterprise Theory: Also Discussing the Reform of State-Owned Enterprises

Author: Cheng Chengping
Publisher:
Publish Date: 2004-11-01
Features: This book takes contract logic as its starting point and transaction costs as its core category to reconstruct the theoretical framework of the firm. The book argues that contract is the "genus" concept of the firm market, and both firms and markets belong to the "species" concept of contract. By analyzing the division of contract forms and the different characteristics of the allocation of residual rights, it defines firms and markets and further proposes the special functions that distinguish firms from markets. The incompleteness of contracts and the asymmetry in the allocation of residual rights among contracting parties are the two fundamental characteristics of firms. In terms of existence, firms manifest as teams, but teams do not necessarily manifest as firms; teams can also manifest as markets. The book successfully explains important issues in firm theory that Coase's theory of the firm could not or could not adequately explain, such as "the emergence of firms," "the boundaries of firms," and "the historical phenomenon of firms and market scales expanding or shrinking simultaneously." Based on the two fundamental characteristics of firms, particularly the efficiency significance of residual rights for their existence, the book analyzes and demonstrates the efficiency mechanisms of all arrangements within firms. In the end, the book applies its research findings to an in-depth discussion of the reform of state-owned enterprises, proposing theoretical frameworks and policy recommendations. The book is logically rigorous, academically standardized, structurally sound, and written in fluent language. It presents many well-founded, reasonable, and innovative new perspectives, making it a significant work in this field in recent years.