Economic Analysis Of Law On Corporate Governance

Company is an effective organization form of modern enterprise system, and corporate governance is the core of the company and also is the standard of whether modern enterprise system has been established. With the globalization of world economy and the deepen development of state-owned enterprises' reformation, comprehensive corporate governance is requirement to survive in the world economic drastic completion for our state-owned enterprises, and also is the key of our state-owned enterprises' reformation. At present, our country still hasn't established normal and effective corporate governance, and there are still many problems in practice. Therefore, our country should firstly learn international experience and set up our own rational corporate governance according to actual status. Corporate governance is a subject which belongs to law, economics and management science, so any way of perfecting the corporate governance only from one subject is not perfect. The author in this article will try to use the method of law and economics and put the law theory and economic research tool together to solve the problems of corporate governance.This article has four parts, the first part talking from the basic theory of corporate governance and law and economics, explains their conceptions and relation, put the contract economics referring to property right theory, transaction cost theory and agency theory with corporate governance, and form the law and economics' basic theory of corporate governance. The second part through the comparison of three typical modes formed by factors of different economy, history tradition, political system represented by America, Germany and Japan, finds out the advantage, disadvantage and their trend to help our country's development. In the third part, the author analyzes and finds out the problems of our enterprises' corporate governance, and sums up the influence of new "company law" on corporate governance. The fourth part comprehensively uses theories of property right, transaction cost and agency in the base of the front three parts, and concludes the methods of establishing transparent property right system, perfecting the qualification of principal parts in agency relation, establishing wholesome manager market with consistent encouragement mechanism in the same time and putting different -benefit bodies in the same benefit function for realizing consistent benefit to perfect our corporate governance.