Misuse Of Assets Of Listed Corporations And Corporate Governance

Misuse of assets of Listed Corporation is the base of the development ofthe stock market, but misuse of assets will affect the quality of the operationof the corporation At present, the facts of those behaviors can be classifiedinto two parts, one is the leave unused of the collected capital, the other is thealteration. Generally, the purpose of the alteration includes entrustingfinancing,caretaker encroaching and control shareholder Tunneling.Thosebehaviors affect not only the operation but the fate of the company.Corporate governance is an important system for reform of westedcompany.and it is regarded as the first measure for the problems ofcorporation As for misuse of assets, however, with the existence ofstate-owned , controling and noncirculating shareholder, corporate governanceas the main plan to dealing with misuse of assets can not be in effect .For thedisaccord of the interest in the company between the control and others,andfor the problem of the deputization caused by state-owned and controlingshareholder, the reform of the corporate governance became resultless.For misuse of assets, the outside supervisal of the listed company didn'twork well. In general ,the company will try his best to cover those actions.Sothe effection of the supervisal will base on how to get the information of thoseactions. The other reason of impotent supervisal lies with the feebleness ofsupervisal measure and lessened execution of law. So improvement of thesupervisal should reinforce not only the intension but the strength ofsupervisal. To some extent,those reforms will control misuse of assets. But forgeneral exisrence of state-owned shareholder in public company, it will causethe confliction of state function.and the effection and the authority ofsupervisal will be weakened.So the ultimate way to restrain misuse of assets isto settle the role of the government in the campany .