Research On The Institution Of Chief Financial Officer Of State-owned Enterprises In China

The Institution of Chief Financial Officer(CFO) is an outcome of modern market economy. Its mechanism reflects the demand of Trust Agency Theory and modern firm property rights Theory. China is now on her way of economy system transition. With the development of Chinese reform and market economy, government and enterprises are gradually set apart. And so do the ownership and management of enterprises. But the representative of state-owned property rights misplacement, corporate governance system is uncompleted and the control of state-owned enterprises by internal personnel seems unavoidable, as a result, executive is not effectively controlled, financial supervision on enterprises is weak, asset is lost seriously and false accounting information is serious. So it has been an important project to establish monitoring mechanism to protect the interest of investors, As a result, it is urgent to carry on research of The Institution of CFO , which is a necessary part of corporate government system. It is a critical issue concerning the success or failure of the reform of economic system in china to conduct an effective inspection on the manager's work in state-owned enterprises, so as to reduce the loss and waste of state-owned capital. The practice of The Institution of Chief Financial Officer(CFO), with the CFO selected and entrusted by the administrative departments of state-owned property; and representing the state government in their practice of inspection on the behaviors of the managers, is beneficial in promoting the competitive and profiting capacity of state-owned enterprises and can solve, to certain extent, the problems of insufficiency of executive and inspecting behaviors in the state-owned enterprises.Standing on the point of improving the corporate governance system, perfecting the financial monitoring mechanism in the state-owned enterprises and protecting the interest of investors, the writer researches the contents of The Institution of Chief Financial Officer(CFO) and the related issues in practice. Analysis the basis of The Institution of CFO on theory law and practice, based on the comparison and analysis on investor monitoring mechanism of foreign countries, and combined with characteristics of Chinese enterprises and experiment practice, the thesis puts forward the mode of Chinese CFOS, which includes CFO's function, different assigning approach, CFO's responsibility right and welfares, CFO's occupational ability, occupational morals of CFO, CFO's employment, management and appraising, the relationship between CFO, manger, accountant manger and other aspects. The write also analyses the problems during the operation CFOS, corresponding solutions and how to perfect this system. At last, the writer point out the bright vista of The Institution of CFO in china.