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Study Of The Legal Issues Of Corporate Governance In China

Posted on:2004-04-22Degree:DoctorType:Dissertation
Country:ChinaCandidate:Z F WuFull Text:PDF
GTID:1116360122467368Subject:Economic Law
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Corporate governance describes all the influences affecting the institutional processes, including those for appointing the controllers and/or regulators, involved in organizing the production and sale of goods and services. Therefore, the author tries to use comparison, demonstration and economy analyses means to approach the legal problems on corporate governance. The dissertation consists of three parts, the main contents are as follows:Chapter 1 primarily deals with the theory of corporate governance. Coase considered the existence of a "master and servant relationship", or an "employer and employee relationship" as a defining feature of a firm. However, this condition would exclude activities carried out by teams, partners, joint ventures, strategic alliances, associations and networks. Corporate governance encompasses the internal policies and practices by which Corporate is operated and controlled on behalf of its shareholders. The advantages of sound corporate governance include having a strong Board of Directors that is accountable to the Company and its owners. On the other hand, Firms whose securities are publicly traded generally have more external influences on their operations than other firms. One way of indicating the scope of corporate governance is to consider the more obvious influences, which can affect the operations of publicly. The influences can be either internal or external with external influences arising from either the private or public sector.Chapter 2 discusses corporate governance of the American, Japan and Germany. Hawley & Williams (1996) undertook a literature review of corporate governance in the US as a background paper for the Organization for Economic Cooperation and Development. They identified four models of corporate control :The Simple Finance Model; The Stewardship Model;The Stakeholder Model; and The Political Model.Chapter 3, The author brings forward some helpful advice for the development of corporate governance. In addition to the financial and managerial modifications that the debtor undertakes consideration should be given to the restructuring of the firm's corporate governance model, through a series of reforms. Traditionally, these reforms have included adjustments to the firm's financial and managerial models. A propergovernance structure translates into better monitoring, improved managerial accountability, and enhanced performance long term, etc.To sum up, Good governance goes beyond common sense. It is a key part of the contract that underpins economic growth in a market economy and public faith in that system. Information theory offers the prospect of establishing design criteria and limits for improving governance systems at both the micro and macro level of society. It provide a basis to design guide-lines for improving regulation, self-regulation and governance in either the private or public sector, corporate governance scholars would need to accept the possibility of people behaving both as opportunistic self-serving agents and selfless stewards. No one theory or model of society is likely to be sufficient for understanding, evaluating or designing governance structures.
Keywords/Search Tags:Corporate governance, agency cost
PDF Full Text Request
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