Research On The Optimization Of Decision-Making Mechanism Under The Influence Of Corporate Governance Context

In the complex business environment, corporate governance paradigm has undergone a fundamental development, and stakeholder contingent-governance research has also emerged. Establishing the decision-making mechanism which can balance the corporate stakeholder's interests is considered as the key to enterprise development. The reality shows that unscientific decision-making system would lead to many problems. Although theories have been outlined corporate governance brought about corporate performance advantage and competitive advantage, its action mechanism research, especially the operator's act as an intermediary variable, still need to study in a deep-going way. Therefore, this research will open the mechanism black box and optimize the approach to operator's decision-making mechanism, so as to make the enterprise and its stakeholders lead win-win cooperation in the long-term healthy development.In order to facilitate optimization and improvement of the decision-making mechanism, stakeholder contingent government concept is brought into the mechanism design process, improving the effect of corporate governance and decision-making and enhancing the long-term enterprise value. This research focuses on the issue of "corporate governance context how to affect the decision-making mechanism", and conducts an in-depth analysis of stakeholder governance how to influence the decision-making, in order to provide theoretical and practical support for operators. In particular, this paper will attempt to explore the following research questions:(1) How does stakeholder contingent government influence the operator's behavior? What is the mechanism? (2) What is the relationship between the decision-making mechanism and operator's behavior constrained by the contingent government? (3) How to optimize the decision-making mechanism under the situation of contingent government?Theoretical research and empirical research are used in this paper, methodologies consist of theory expansion, theoretical model analysis, large-scale surveys and case analysis, covering 176 valid questionnaire data and 30 middle and senior management personnel from 21 enterprises in Zhejiang Province. Three sub-study in depth to demonstrate the above-mentioned research questions.(1) The first sub-study built an operator's behavioral portfolio model, and confirmed stakeholder contingent governance can improve the effectiveness of the operator behavior constraint and corporate governance through empirical study. There was not many existing literature studying on the function of coordination. This article explored the operator's coordinating action as a sub-act of production, and confirmed that for a given level of seeking private benefits, stakeholder contingent governance spent less monitoring costs than the shareholder's unilateral governance, and there was a positive relationship between the number of governance body and the effectiveness incentives and monitor. This paper then designed the corporate governance index; selected variable by factor analysis and index calculation, and results showed that stakeholder contingent governance could achieve higher corporate governance effectiveness than the shareholder's unilateral governance. In addition, the results of control variables research showed that the enterprise nature and firm size has also impacted on corporate governance effectiveness.(2) The second sub-study built a decision-making theoretical model based of B-C index which could balancing the decision power, and confirmed stakeholder contingent governance can improve the effectiveness of decision-making and coordination through empirical study. There was not many existing literature studying on comparison of decision-making power configuration and decision-making results according to governance context, this article compared real power and decision-making power in the perspective of cooperative game. Studies have shown that there was no direct link between equity allocation and decision-making authority, also found internal power balance could improve corporate governance effectiveness, and the introduction of stakeholder governance could enhance the decision-making effectiveness. According to the two important properties of operator behaviors, namely decision-making and coordination, this paper conducted an empirical research of decision-making mechanism through factor analysis, mean testing, and indicator calculation. Results showed that stakeholder contingent governance could achieve higher level of decision-making effectiveness, coordination effectiveness, and interest satisfaction than the shareholder's unilateral governance. However, there is no significant difference of stakeholder combined influence between the two. In addition, the control variables study showed that these is negative relationship between enterprise size and the effectiveness of decision-making and coordination, while the effectiveness of decision-making and coordination in state-owned enterprises and listed companies were not optimistic. This paper provided explanation, theoretical and practical suggestions reference to interview contents.(3) The third sub-study built a situational decision-making mechanism, through simulation experiments and case study, provided theory and action suggestions. Existing decision-making literature was mainly based on shareholder sovereignty paradigm, and with the assumption of fully rational policy-maker, while the premise in this paper was limited degree of rational behavior. From the corporate governance context perspective, stakeholder satisfaction indicators were introduced as decision-making project attributes, based on TOPSIS method, the operator's multiple attribute decision model was built to reflect the equilibrium of interests. For the four categories of corporate governance context, this paper conducted a decision-making mechanism simulation in systematic and comprehensive way. Sensitivity analysis of property values was the process of post-optimization. Finally, according to the case study during 6 months, two manufacturing industries in Hangzhou were chose; the operator's multiple attribute decision models were tested and discussed in different corporate governance contexts. Cross-case analysis confirmed there was a positive relationship between the decision-making stability the item number of decision-making project attribute, and suggested operators could improve the predictability of decision-making by sensitivity analysis.Based on theories of corporate governance, stakeholder and decision-making mechanism, this paper focused on the question of how does corporate governance context affect the decision-making mechanism, three innovative research summarized in the following.(1) Illustrated the process of corporate governance influencing operator's decision-making mechanism. This paper established a logic chain of "corporate governance-management behavior-operator decision-making mechanism", and in-depth explored the relationship between the corporate governance and business decision-making, tried to open the black box, in order to enrich the research content of existing business decisions.(2) Revealed the importance of stakeholder contingent governance to operator's decision-making mechanism. This paper expanded existing decision-making theory and relevant theoretical model, combined with empirical research, put forward that the impact of the stakeholder contingent governance could not be ignored.(3) Systematically analyzed the application of optimized decision-making mechanism. By grasping of project attributes and the decision-making contexts, different operator's decision-making models were established, reflecting the balance of stakeholder interests. Through approaches of simulation examples and case study, this article conducted systematic research and analysis of the multiple attribute decision model in a panoramic view way, and provided policy recommendations.