Research on Governance Mode Development of the State-Owned Enterprise: A Framework on the Theory of Principal-Agent

With the state-owned enterprise reforming, state-owned enterprise governance mode had experienced a series of changes, the principal-agent relationship in different periods show different characteristics. This paper analyzes the characteristics of the governance mode of state-owned enterprise during the beginning of reform and opening up including the "decentralization" stage and responsibility system stage, stage of establishing modern enterprise system on the Principal-Agent Theory. The conditions for the optimal solution of the principal agent and the agent are revealed by the method of solving the equation. The relationship of the principal-agent relationship in each stage is analyzed, and the development process of the governance model of the state-owned enterprise is sorted out, providing a useful reference for the further reform in the governance mode of the state-owned enterprises.