“The reform of state-owned enterprise and the effects of economic transition on the driving force of companies”
Tian Hui
Authors: Tian Hui
Extract from ” From Guanli Shijie (Management World), Vol.9, 2006, pp 1-5.“
A company’s results can be affected by a number of legal entities which are regulated by national- and company-level institutions and together form what are known as a company’s “driving force”. During the transition from a planned to a market economy these legal entities — that include shareholders, managers, employees, market competitors as well as the government — all play a role in a company’s results by creating a shareholder dynamic, managerial and staff energy, market pressures and changes in the company respectively.
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