The Study On Financial Institutional Arrangements Of Enterprises

According to the theory that "A firm is a nexus of contracts" and based on the importance of institutions to a contract, this paper tries to find a group of suitable institutional arrangements, which include financial power distribution, written financial regulations, thoughts and values, to constraint the behaviors of different partners in a contract so as to coordinate the conflicts of interests and improve the efficiency of financial decisions and financial resource distribution. This paper also reviews the changes of Chinese financial institutions. It analyzes the reasons and characters of such changes, and forecasts the further changes in the future.There are six chapters in this paper.The first chapter introduces the Firm Theory in New Institutional Economics. It also introduces the definitions of institutional arrangement and considers the elicitations from the Firm Theory.The second chapter gives a definition of financial institutional arrangement, and discusses its concepts in detail. This chapter also points out the functions, the ideal and practical interests orientation of financial institutional arrangements.Chapter 3,4 and 5 are about the contents of financial institutional arrangements. The contents are depicted as financial governance system, written financial regulations and corporate financial culture according to their forms. The focus of Chapter 3 is on how to break down and distribute financial power, and on the objects and measures of financial governance as well. Chapter 4 divides the written financial regulations into tree levels according to their sanctions. And Chapter 5 states that corporate financial culture is a kind of informal institutional arrangements, and it is a very important supplement to the formal ones.The sixth chapter reviews the changes of Chinese financial institutions and analyzes the reasons and characters of such changes. It also gives a brief forecast of the trends of further change.