Manager Control of Newly-Emerging State-owned Enterprises in China

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I focus my study on two newly-emerging state-owned enterprises in China. In company A, its control is concentrated in the hands of managers, but in company B, its control is concentrated in the hand of the state government. I find that company A has better performance than company B. Why did the difference happen? I analyze the relationship between the different ownership patterns and company performance. As a result of tins research, managerial skill has begun to show its the first place in the management of the state-owned enterprises. But a new problem is that these managers who have power over firms significantly rather than the state(shareholder) are asking for company property right and the state is facing a dilemma : losing its ownership right on the state enterprises or sacrificing the efficiency of the state enterprises for keeping ownership controlling. I try to provide a solution for this dilemma by applying the human capital theory to the case I had a presentation entitled "Capital, Human Capital and Corporate Ownership" in a workshop [Corporate Governance in China] held by Aichi University in Jal.31, 2004.