On The Operation Of External And Non-Administrative Supervision On Listed Corporations--With The View Of Pluralism

Listed corporations are dispensable parts of a security market. And the running of a listed corporation is inevitably concerning with the investor's profits, not only shareholders, but also all the participators in the market, which we usually called the investor's confidence. So listed corporations are always the focus, and corporation governance, on which the managing level of the corporations depends, is always the main subject of the security market. The corporation governance is composed of two aspects: the internal governance and the external governance. To be a listed company, the security market is the most important factors of the external governance. But we often ignore the point. As a result, although the internal mechanism setting of the listed company and administrative supervision are taken seriously all along, the fact of the bad running of the company, such as lying on account, which does great harm to investors, can not be avoided. The author holds that the monistic external-supervision of the corporation is the essential reason, and pluralism of the external-supervision of listed corporations shall be recognized. Therefore, the effects of market on corporation governance should be paid attention to, and some factors, like hostile-takeover, creditor, inter-medium, news-media, analyst .etc, should be led into the external governance mechanism. Then the management of listed corporations is sure to be improved.