A Study On The Designs Of Internal Financial Institution In The Enterprises

According to the theory of New Institutional Economics and Modern Financial Go -vemance, and by using Modem Corporation Theory, Management, Organizational Behavior, Finance of Longlomerates, Financial Strategic Management and Game theory, this paper tries to find out the changes and actuality of the internal financial institutions in Chinese enterprises and seeks suitable designs of the internal financial institutions in the enterprises, to distribute the powers among different partners in a contract so as to minimize the conflicts of interests and maximize the aggregate benefits. It also economizes the transaction cost, increases the comparative advantage of the internal organization resource, and improves the financial resource distribution. This paper also forecasts the further study and point out the limitations.There are five chapters in this paper:The first chapter supplies a description of the framework in this study, and gives some relative definitions and hypothesis about the internal financial Institutions.The second chapter depicts the actuality of the internal financial institutions in Chinese enterprises. This part finds out the actuality through instance analysis and also illuminates the changes of the internal financial Institution.Chapters and 4 are about how to design the internal financial institutions. At first, in chapters, we analyze the environments which affect the internal financial institution. Then, according to the certain factors, we begin to illustrate the financial governance among shareholders, corporate managers, and directors. We study the power distribution and the management authority among the three levels, discuss how to coordinate the three levels and elucidate a game theory model to settle down the financial objective of the firm.Chapter five gives a brief forecast of the trends of further study and enumerates some limitations in this paper.