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The Research On Financial Governance Of Chinese Listed Companies

Posted on:2006-06-22Degree:MasterType:Thesis
Country:ChinaCandidate:J TanFull Text:PDF
GTID:2156360152970264Subject:Accounting
Abstract/Summary:PDF Full Text Request
Whatever from theory or practice, financial governance is one of the most important aspects of corporate governance. Though there are rich achievements in theoretical research of it, they all studied on what functions financial governance had. And the conditions of financial governance's effectiveness are not paid close attention. By analyzing financial governance of companies in Britain, America, Japan and Germany, the author finds that the financial governance's effectiveness will be influenced by such conditions as investor's nature, concentration ratio of stock's and creditor's rights and capital market.The listed companies are the lifeblood of Chinese economy, and their financial governance's effectiveness will exert influence on managerial and financial situation and even on the prosperity and development of the economy. But most researches have discovered that it has been ineffective, because it has been incomplete to conditions, which bring financial governance into effect. Firstly, the big shareholders and the main creditors of the listed companies are respectively state-owned stock shareholders and state-run commercial banks, whose state-run nature has weakened their motive to control companies' managers at present. Secondly, resulting from the problem of free ride, the minority shareholders would not like to monitor actively, either. Thirdly, the scale of institutional investors is small, the development of the enterprise bond market lags behind, the mechanism of stock market is not good, and the bankruptcy law is imperfect. But, learning our country's new policies and regulations concerned, we find in China the conditions are becoming complete, and the financial governance of the listed companies is out of the awkward state. Therefore it is essential and possible to improve financial governance's effectiveness of listed companies in our country. Considering current situation that most listed companies are state-run and that the state-run commercial banks arc the main creditor, is difficult to change, the author believe that the comparatively proper method which can improve the financial governance's effectiveness is: advance the plan of operator's holding share, reform the commercial bank, perfect the bankruptcy law, and develop the enterprise bond market.Assimilating the existing achievements, this paper, in view of the conditions of financial governance, inquires into the problem of corporate governance of listedcompanies in China. It has important meaning for both theory and practice. Theoretically, it is a new view angle; practically, it puts forward practical proposals, so that they can be helpful to the reform of corporate governance of listed companies in China.
Keywords/Search Tags:Financial governance, Investor's nature, Concentration ratio of stock's rights, Concentration ratio of creditor's rights, Capital market
PDF Full Text Request
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