Study On Corporate Governance

How to establish corporate governance is the concerns of both jurist and economist .The improvements of the theories on corporate governance have close relations with the advanced economical theories . Theories of the New Institutional Economics reveal that an enterprise is a complex of contracts , the relation ship between the shareholders and the managing board is that between the principal and the agent ,the information unbalance between the principal and the agent increases the danger of the agent's opportunism and that institution may decrease the transaction costs .Those theories have provided a new method on the research of corporate government .This paper tries to study the internal legal rules and external legal rules of corporate governance based on the theories of New Institutional Economics and gives suggestion on the establishment of the corporate governance of China.