Governance Of Listed Companies In Transition Economies - A Theoretical Framework And Evidence Of China's Securities Market Visits

Ten years ago few people research the question of corporate governance. Today it has become the study to which scholars worldwide attach importance. After Aoki's comparative analysis of the corporate governance systems of USA, Japan and German with the game theory in 1984,great interest of economists to investigate into this field is aroused. Now this state is still in the ascendant. In recent years a new trend of consummating corporate governance system and advancing governance efficiency has appeared. Some international organizations and advanced market countries begin to innovate institutions aiming at enhancing corporate governance efficiency. For example, OECD issued the principle of corporate governance in 1999. At the annual meeting of IOSCO in 2000, the committee of emerging markets advocated that all the countries should use OECD principle as the reference in improving corporate governance of PLC. IASC released a new edition of IAS, etc.In China, corporate governance is still a new concept. In the early stage of enterprise reform, more attention is paid to reducing administrative interference and enlarging self-determination right. While stockholders' interest and function of board of directors are less considered. In the early 1990s, relating researches about corporate governance came into being in China. After this, relative conceptions of corporate governance also appeared in CCP documents. For instance, the fourth session of the fifteenth CCP Central Conference definitely pointed out that corporation system is an effective structure for modern enterprise and corporate governance structure is the core of corporation system. This is the first appearance of the concept of corporate governance structure in CCP documents. Along with the rapid development of securities market in China, the important role of PLC in the national economy gradually unfolds. Properly selecting and adequately utilizing PLC can release China from of the bondage of the highly concentrated planned economy as soon as possible, realize the optimal collocation of resources by market and advance economic competitiveness. Now corporate governance systems of China PLC take on many characteristics of economic transform period such ashighly concentrated ownership structure, old system impacting the decision making and function of board of director and managers, weakening representative rights of corporate owners, phenomenon of insider control, lack of effective incentive and supervision mechanism toward superiors and puny external pressure of capital market on corporation. Compared with the requirements of international criteria, market supervision level and criterion, accounting standards, disclosure and transparency in China still lag behind. With the entry into WTO and the increasing degree of market opening, the demand for establishing securities market consisting of PLC with high governance level is increasing. If the international investors lose confidence in the governance of PLC in China, the enterprise financing in international market will be affected. Consummating corporate governance and boosting governance efficiency have gradually become the common focus of the domestic investors and market supervisors in China.The life of theory lies in whether or not it can reflect and instruct the practice. Therefore, the theorists should consider real situations as the beginning point and the destination of study. Identifying research opportunities in the practice and meeting the practice's need to the maximum degree should be the aim of study. That's the reason why this paper selected the corporate governance as the topic of doctorial thesis. Based on the framework for theory analysis, from the aspect of finance and with PLC of China as the sample, this paper provides the positive analysis of the corporate governance problems existing in PLC of China and formulates the suggestions for policy making.This paper consists of ten chapters.The first chapter is the introduction of background and signification of topic selecti...