Research On Firm Governance Theory And Empricial Study Based On Value Added

With Corporate Social Responsibility has increasingly attracted the extensive attention of all circles of the society. How to implement Social Responsibility in the process of Corporate Governance becomes a pressing problem for companies. Value added is an important content of corporate social responsibility, it has important theoretical and practical significance of the construction of corporate governance theory based on Value Added.In order to make Corporate Social Responsibility can be better integrated into Corporate Governance. Firstly, this paper takes Corporate Governance and Corporate Social Responsibility into a unified logical framework to research based on Value Added. Secondly, this paper builds the corporate governance theory based on Value Added, and do detailed research on the management goal of company, the incentive of key stakeholders based on this theory. Finally, this paper do some empirical test on the characteristics of this theory. The main research content and innovation of this paper are as follows:1. Taking Corporate Governance and Corporate Social Responsibility into a unified logical framework based on Value Added theory. This paper analytic demonstrates the process of corporate to create Value Added and then distribute Value Added to stakeholders which reflects corporate fulfill Social Responsibility for stakeholders; and discusses that the Corporate Governance based the goal of Value Added creation is inheritance and transcendence compared with the traditional Corporate Governance based on principal-agent theory. This paper regards that Value Added distribution is a form of corporate fulfill Social Responsibility for stakeholders, and Value Added creation can be used as an important goal of Corporate Governance. Therefore, Value Added theory can be used as the theoretical foundation to support the fusion of Corporate Governance and Corporate Social Responsibility.2. Building the Corporate Governance theory based on Value Added. Although Value Added theory can be used as the theoretical foundation to support the fusion of Corporate Governance and Corporate Social Responsibility, most of the traditional enterprise theory is based on profit maximization as the goal, not Value Added. Therefore, this paper takes contract theory, collective choice theory, access theory and so on as foundation to build up the Corporate Governance based on Value Added. This theory gives the basic answer to the two important problems of enterprise theory-the nature and governance of corporate, this theory regards that the nature of corporate is to create Value Added maximization under the condition of individual rationality and collective rationality; and that who provides the key resources to make a significant contribution to Value Added creation can be key stakeholder to participate in Corporate Governance. This theory also has the following features:(1) Corporate distribute Value Added to key stakeholders as a way of incentive method; (2) Key stakeholders who participate in Corporate Governance is not static, but dynamic evolution, in order to realize the management goal, corporate can according to the economic environment change key stakeholders dynamically. (3) Corporate’s general stakeholders who are not key stakeholders gain benefits from Value Added of the whole value chain, not only from the target corporate. According to the Corporate Governance based on Value Added, as while as corporate reach the goal of Corporate Governance:maximize Value Added creation under some constraint conditions, by making key stakeholders share Value Added created by corporate can be achieved fulfil Social Responsibility to key stakeholders.3. Making empirical test to test the effectiveness of Value Added creation as corporate management goal and Value Added distribution as a way to motivate key stakeholders. This paper applies Propensity Score Matching to do an empirical research on the influence of Value Added distribution to staff on corporate Value Added to test the rationality of Value Added creation as corporate management goal and the effectiveness of Value Added distribution as a way to motivate key stakeholders. The results show that, after control of other factors, no mater to relative index (employee income rate) or absolute index (per worker Value Added income) for grouping the levels of Value Added distribution to staff, the results are both Value Added index and shareholders index in high level of staff Value Added distribution group are significantly higher those in low level of staff Value Added distribution group. It is proved that:(1) Value Added creation as corporate management goal is reasonable, because when corporate create more Value Added, shareholders’interest will be improved at the same time; (2) Value Added distribution as a way to motivate key stakeholders is effective, such an incentive way can make key stakeholders to create more Value Added and as while as more interests for shareholders.4. Making empirical test to test the effectiveness of corporate dynamic adjustment of key stakeholders. This paper applies Propensity Score Matching to do an empirical research on the influence of equity incentive on corporate Value Added to test the effectiveness of corporate dynamic adjustment of key stakeholders. The results show that, after control of other factors, Value Added index and shareholders index in companies who implement equity incentive are significantly higher those in companies who don’t implement equity incentive. This suggests that corporate dynamic adjustment of key stakeholders according to the change of economic environment is effective, Such a way of dynamic evolution can ensure that shareholders’ interests are not violated at the same time increasing corporate Value Added.