Analysis And Research On Corporate Governance Problems Of PLC In China

The continuing development of the capital market and the company corruption and scandal therein have been attracted the attention of theorist, regulatory and authorities, management, investor and market intermediary to corporate governance, that is expected to can manage and avoid the various conflict of interest, improve the efficiency of the capital market, and facility the development of the market. For corporate governance of PLC in china mainland, we must take into account of the special history and status quo of the capital market in addition the common problem focused internationally in the work of researching and practicing. I have selected this title as my MBA thesis with the content of analyzing the situation of PLC listing in china mainland and impact of the stakeholders on the corporate governance. On the basis of the analysis I propose the cost efficiency principle of corporate governance and some measurements relation to the management selection and motivation in this thesis.The prime objective of the corporate governance is also maximization the value the asset the owner hold, to meet this objective, according to the general model of valuation regarding to assets pertain to the owner, all the solutions and measurements in respect to corporate governance must realize or facility maximum revenue rising and risk reducing. In china mainland, there is difference between the valuation model of the quoted shareholders and non-quoted shareholders, which resulted in conflict of interest between the two types of shareholders. The non-quoted shareholders always can control or impose significance influence on the operation and financial policy of the company, that may damage the interest of the quoted shareholders, and result in non-quoted shareholders' breach of commercial ethics and non-compliance with legislation and regulations. The thesis analyze the motivation of the non-quoted shareholders in depth to further public offering and the quoted shareholders' chose in the offering and the result thereof. This phenomenon of 'non-quoted shareholders vote, quoted shareholders subscribe' heavily reflects the interest conflicts. By analyzing the benefit expectation of the company's stakeholders and identifying the potential risks which may arise from stakeholders, a proposal can be got that in order to realize the objective of company, corporate governance should consider and trade-off the interest of stakeholders, satisfy the interest of them as practical as possible. only if this balance maintain, the economical resource can be utilized efficiently, and risks be reduced as possible as it should be. Taking the corporate resource and value-create activity into consideration, for the purpose of avoid or reduce conflict of interest between non-quoted shareholders and quoted shareholders, stakeholders and shareholders, shareholders and directors, improve the efficiency and effectiveness of management and operation of the company, and meet the objective of the company, the corporate governance in the end should be seek the best way or solution to utilize the company resource. Those include the best portfolio of the elements of the resource, management and cooperation of the activity of resource transference into goods and service to realize value-add. The corporate governance itself should be considered how to add value in this process.