The Fundamental of Corporate Governance Is Entrepreneur’s Logic Instead of Agent’s Will—Based on Case Study of Shanghai Jahwa ()
ABSTRACT
Restructuring of
state-owned enterprises (SOEs) introduces diversified investment to change the
situation in which state-owned shares play a dominant role. However, this
process is full of complexity. The key of restructuring is to follow the
fundamental logic of corporate governance, that is, to give full play of
entrepreneurship instead of the agent’s will. This case analyzes the gain and
loss of Shanghai Jahwa (hereinafter referred to as Jahwa) and finds out that
the agent’s will plays a leading role in corporate governance, making the
development of Jahwa deviate from the entrepreneur’s logic and resulting in
much uncertainty of the future development. This case enlightens us that the
key to judging the rightness of the direction of restructuring of SOEs is to
see if the restructured corporate follows the entrepreneur’s logic.
Share and Cite:
Guo, H. (2016) The Fundamental of Corporate Governance Is Entrepreneur’s Logic Instead of Agent’s Will—Based on Case Study of Shanghai Jahwa.
Modern Economy,
7, 271-275. doi:
10.4236/me.2016.73029.
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