A Research On Mode Of Corporate Governance In East Asia

The reason of the appearance of the Corporate Governance Structure lies on the formation of modern company legal property right. Modern company legal property right is a typical capital right relationship of the agency by agreement. The concept of the entrustment and agency come from law catalogue. From the aspect of information economy, the two partners with different interest aims form an entrust-agency relationship from the very beginning of intending to sign a cooperation agreement. We call the one taking the private advantages the agent, while the other principal. The key of the problem between them is the information imbalance. The information asymmetry before signing an agreement is called opposite choice. The information asymmetry after shifting an agreement is called moral risk. The cooperation agreement is built on the mutual confidence between principals and agents, in order to avoid infringing upon the principal's interests. Practically, agent's interests can't be achieved according to the agreement. This becomes the moral trial. From the view of the Corporate Governance Structure, manager's levels in enterprises take the active position. It becomes important for the corporate governance of modern enterprises to guarantee the interests of respective enterprise by the mechanism of balance and to encourage the managers. The Corporate Governance originates in English words. Most people believe it is first used by an American scholar Bally Mince in his works "modern company and its property". In the continent of our country, most people translate it into company managing structure or legal person managing structure. There are many understands about its implicational meanings but no consensus has been achieved. Their main opinions are as follows: a. what the company researches is the problem of the agent when separating the proprietary right and the management right, if the key problem is to reduce the agent cost. b. corporate governance structures include thinking methods, theories, and conducting of the trustees and the board of the directors. It involves with the relationships among the board, shareholders, and administrative departments at a high level, designers, auditors and other relatives. c. the key problems of the corporate governance are: a) who benefits from the company's decision? b) Who should benefit from the company's decision? Corporate governance will generate problems when the two are conflicting. d. company's organizing arrangement lies on the investors. It includes the board of the directors to the executive managers -the demand of the corporate governance generates as the separation of the propriety right and controlling right in the modern stock limited company. e. How to allot and use the control right? How to supervise and evaluate the broad of the directors, managers and employees? How to design and carry out the encouraging mechanism? f. the essence of the corporate governance is a mechanism of the balance between the owner and the operator. g. corporate governance is a policy to supervise and control the company, including a set of relationships of administrative levels, board of the directors, shareholders and the relative ones. All of these opinions either emphasize the interests of the owner, or consider the problem of putting the interests of the two sides at an equal level. In my opinion, research on the corporate governance should pay attention to the shareholders because of their unique function in the corporate governance. In a broad sense, every mechanism good to the corporate governance is corporate governance, including the products of the enterprises, capital market,inside and outside labor market the managers facing, the law and regulations to protect the investors'interest drawn up by the government, trade standards and regulations, the supervise of the public opinion, and the pubic credit environments. In a narrow sense, it only includes share right structures, broad of the directors, the structure of the encouraging, balance and financing and the company controlling the market. Corporate governance mold refers to a certain combination of the certain corporate mechanism relying on each other in a certain market environment. It is confined by the law system, cultural traditions and many other factors in a country. Market-dominant, bank-dominant, family-controlling have a special characteristics on the corporate governance structures. British and American corporate governance is market-dominant corporate governance structure, with the characteristic of the market controlling on the shiftiness, scattering of the shares. The corporate governance structure in Germany and Japan stock company build on the trade agreements with credit. They have the rights to choose .the enterprises in Southeast Asia go along the different road from the western companies. They form the stock companies with family controlling the stock. Ownership rights and the management rights are not separated in those companies. Companies and the families become one unity. The family members hold the stocks. Under this structure, company ownership is on the family members hands. The main manage and administrative rights are hold by the family members and the decision posses go on with the family presses. The characteristics of the corporate governance structure in Japan include in the following aspects: a. especial enterprises encouraging mechanism; b. right persons hole the stock crossly; c. concentration of the ownership rights; d. the effective supervise of the worker committee; e. the effective supervise of the large stockholders; f. supervise each other; g. stockholders and board; h. closeable interfere; i. restriction of the company acceptation. Four factorsinfluence the formation of Japanese corporate governance structure: law and regulations; policies, culture and history; stockholders preference and conducting abilities; the developing level of the economy and capital markets. The changes of Japanese corporate governance structure are reflected in the following aspects: a. pay attention to the stockholders'interests and strengthen the administrative effect of the security market; b. waken the control the main bank giving to the company; c. reduce the crossing stokehold and pay attention to the investing shareholders'function; d. Inner part reform of the corporate governance structures. The superiority of Japanese corporate governance reflects in the following aspects: containing the elective agreement; promoting long-term stable relationship. This structure solves the problems, like the lack of the ability of supervising and encouraging; lack of the interests because of the sensitive stock markets. The above-mentioned advantages make the company develop better and increase the transaction efficiency. The drawbacks of the Japanese corporate governance are: a. right person ownership loses the function of the market supervision; b. main bank system reduces the efficiency; c. the concentration of the managers rights produces the lack of the company inner supervision mechanism; d. the rank system makes the enterprises mental diminish. The financial crisis in 1997 greatly shocked Korean economy, and the unreasonable corporate governance deepens the influence. Korean corporate governance structure is the main reason for the financial crisis: a. large enterprises are not frightened of leaving the market; b. the lack of efficient supervision to the financial institutes; c. shareholders'legal rights do not have guarantee; d. inefficiency of the board supervision; e. lack of transparent information. In March of 1999, Korean corporate governance committee came into being. It is an informal organization aiming at making the principal on corporate governance and building reasonable corporate governance structure. In1999, the best maxima of Korean corporate governance came out. Koreacarried on the corporate governance reform in following aspects: a. making the companies without living ability out of the market; b. reform from the inner and outer expects; c. carrying out a serer of things to make the corporate governance; d. enlarging the middle-small shareholders'right; e. appointing out-directors and strengthening the board function; f. stopping cross gangrenes; g. increase information transparency. Family enterprises generally experience four stages, according to the changes of ownership structures: ownership stage, pre-family stage, combination stage and public stage. The key of them is enterprises'owning and controlling by the family. Bringing the family relation into the enterprises can reduce the transaction cost of economic resources in the market and enterprises agreement. Its altruism characteristics of the family company can reduce the agent cost in the inner part of the enterprises. The credit and loyalty in the company can reduce the transaction cost. From the aspect of the administrative behavior, family company has some certain affiance on the corporate governance compared with the common enterprises. It can keep their competition ability on a retain degree. a. enterprise's act conforms to the factory and merchant's standard; b. it has great cohesive force ; c. quick decision of marked; d. the administrative stability increases. The characteristics of Southeast Asia corporate governess are as follows: a. share rights concentrate in the family members and private enterprises; b. board decision reflects the family's will; c. the key persons in the family have the superior authority functioning as the soul; d. the relationship entrust-agency is very personal; e. share-holder's rights structure is very stable. The experience of Chinese enterprises in Southeast Asia indicates that it is reasonable from the aspects of reliable family financial capital, loyal and high quality of human resources, inner family stock system and management form combination of the west and east. Most of the stock company in chain comes from the traditional...