Diversified Choices of Corporate Governance and Reform of the State-owned Enterprises

As corporate governance is a series of legal, cultural and institutional arrangement on allocation of corporate control right and residual claim right, corporate governance embodies processes and systems by which corporate enterprises are directed. These arrangements decide what the main corporation's object is, who, when and how exercise their control on enterprises? How the risk and benefits be attributed among different members of enterprises? Since the beginning of the economic reforms in 1978, China has been searching an efficient corporate governance system for its state-owned enterprises (SOE). From the experience of the reform and the history from state to state, it shows that there is no single mode which is efficient for all the circumstances. So for future reform, it need not repeat the past, but to find some basic principle to follow which should be obeyed in the process of choosing the most suitable corporate governance structure in different circumstance for all sorts of SOE in China .