Mathematical modeling of China's State-owned Enterprises' Contract System

Shan Feng (First Author), Lida Xu (Participant Author)

    Research output: Contribution to journalJournal

    14 Citations (Web of Science)


    The Chinese government has adopted a policy to separate the management and ownership of the state-owned enterprises as a key step to move them towards modern-type enterprises. State-owned Enterprises' Contract System (SECS) is a major enterprise management system in China today. In this paper, mathematical models are employed to examine some macro aspects of SECS. First, the behavior of SECS is analyzed through introducing two measurement indices; second, two incentive models of SECS are developed using audit as a tool for acquiring information for decision making; third, from a mathematical analysis, a general rule which determines optimal incentive strategy under perfect information is presented.
    Original languageEnglish
    Pages (from-to)235-242
    JournalEuropean Journal of Operational Research
    Issue number2
    Publication statusPublished - 2000


    • Competition
    • Developing countries
    • Government
    • Optimization

    Indexed by

    • ABDC-A*
    • SCIE
    • EI
    • Scopus
    • SSCI


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