| Chinese economic model is changing from traditional planned economy to market economy. To be a mature market economy, the economic evolution process not only requires institutional change, but also contributed to institutional change. The split share structure reform is a major institutional change, and the impact on China’s capital market is profound. 2010 International Climate Conference in Copenhagen imposed social responsibility constraints on the development model of enterprise. Enterprises as economic units form the basis of macro-economic, while they are also infected by the internal and external environment. As enterprises lie in Social and economic networks, the transformation of strategic objectives and the optimization of corporate finance financial governance are urgently needed to be solved. The paper selects the impact of the split share structure reform to financial governance of Chinese listed companies as issue to be studied. On one side, it is available to give an objective assessment about the impact of the share reform on financial governance of listed companies, encouraging enterprises to choose the right financial governance structures and mechanisms to improve the efficiency of financial governance of listed companies. On the other hand, it is conductive to deepen China’s capital market reform and reduce China’s capital market dependence on the path of institutional change, while institutional innovation is strengthening and promoting the healthy development of capital market.The paper first introduces the background, purpose and significance, and studies domestic and abroad literatures, which show that the split share structure reform, corporate strategy and financial governance theory on how to explain the meaning of financial governance, financial governance structure, mechanism and efficiency. By reviewing the three stages of the split share structure reform, the paper analysis the previous problems of listed companies, including that of financial governance structure, mechanism, and efficiency. The paper chooses 70 listed companies as samples that the share can freely circulate at the end of 2008, and selecting six indicators about the business performance and growth, 16 financial indicators which relate to financial management. Through setting up multiple regression models, we can in-depth analysis the impact of the reform on financial governance. On the basis, by the use of scalable data envelopment analysis, we evaluate the efficiency of financial governance and try to find the main factors. Meanwhile, the paper uses the gray relational model, based on three areas, trying to find the relationship between the external environment and the company’s financial governance, which we can find the strategic transformation of enterprises on financial governance under the influence of the external environment. Finally, look for ways to improve the efficiency of financial governance.The research conclusions are:(1) Financial governance is developed from the cross-integration of corporate finance and corporate governance, and financial governance is the core of corporate governance. In financial governance theory, financial governance structure is the foundation of financial governance and financial governance mechanism is the institution to ensure that, while the efficiency of financial governance is the ultimate goal. They are subjected to internal and external financial environment, and are reflected in corporate governance behaviors.(2) There is a path that the split share reform impact financial governance and corporate strategy. By adjusting the ownership structure through split share reform, it has changed the internal and external environment of financial governance of listed companies. The internal financing and risk, M & A and restructuring, dividend distribution and incentive constraints and other financial activities reflect corporate financial governance structure and mechanisms change. In the external, through the transformation of corporate strategy, the corporates change their profit orientation from short-term goals to long-term goals, and ultimately affect the efficiency of financial governance.(3) The process of Chinese split share reform is divided into three stages, and shows two key points. In the implementation phase of the share reform, the share reform of listed companies have a greater financial role in promoting governance; while in the circulation phase, the split share reform in promoting the company’s financial governance has a trend of slowing down.(4) Three times compared econometric model analysis showed that the split share structure reform, the main composition and ownership stake and economic performance indicators are positively correlated, indicating that the reform changed the ownership structure, corporate governance structure so as to promote optimal combination.(5) The most important factor of financial governance structure is the balances of interests. Under Chinese characteristics, with the institutional investors involved in companies fairs, which have constraints on the internal controllers over others, and increase the role of checks and balances of interests. (6) The impact of split share structure reform on shareholders financial governance efficiency is bigger than that on company’s overall financial governance. The main factors of internal financial governance are institutional ownership, the largest shareholders, creditors, manager, executive compensation and independent directors.(7) Financial governance of listed companies is closely related to the external environment. Currently, most corporate strategic objections remain to maximize corporate value or shareholder value maximization, meanwhile, using the "extensive" growth mode. However, from development trends, corporate strategic goals are changing, which will be good to improve the efficiency of financial governance.(8) It proposes five subjects to improve the efficiency of financial governance of listed companies. 1) Accelerating the transformation of business strategy, establishing goals to maximize the interests of stakeholders, change the mode of deevelopment from "extensive" to "intensive". 2) Select appropriate financial governance body, adjusting the main state-owned shares, fostering institutional investors, strengthening checks and balances among shareholders. 3) Making clear the responsibilities of general meeting of shareholders, board of directors and board of supervisors and other financial institutions of governance, establishing a sound system of decision-making, strengthening the role of independent directors. 4) Strengthening the internal incentive and restraint mechanisms, to develop scientific appraisal standards, comprehensive salary, equity incentives and other dynamic incentive mechanism; 5) By innovating financial governance mechanism, combinating shared governance and contingent governance, and getting the dynamic financial governance, we can improve financial governance efficiency.The innovation of the paper are: (1) by using three times econometric model of the split share structure reform which carried out in different time slots, respectively, before and after comparison, the study found that in different stages the share reform had different impacts on financial governance; (2) by using DEA analysis on assessment of financial governance efficiency, we can find the main factors of the split share structure reform on financial governance efficiency; (3) we demonstrated the strategic business transformation by the gray model, innovating financial governance mechanism, and the combination of stakeholder governance and contingent control. |
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