Study On The Object Of Corporate Governance Based On Economic Value Added

In the process of transferring to market economy in China, establishing a modernized enterprise system is the goal for the reform of enterprises. However, because of the separation of ownership and controlling rights, many enterprises have confronted the new phenomena such as waste resources, destroy wealth and inner control, which leads shareholders'right couldn't be guaranteed. Therefore, in order to efficiently guarantee shareholders'right, resolve the Agent-problem and balance the other stakeholder's profit, we have to strengthen the research on corporate governance. The content of corporate governance concerns corporate governance's object, structure, model, system, etc. This paper will mainly discuss the object of corporate governance. As the orient of corporate governance, the object of corporate governance means whose profit is the domination that we should maximize in corporate, which is important to improve corporate governance. How to improve it, I consider three problems must be resolved, that is how to opt it, how to measure it and how to realize it. In terms of the first problem, the present academic circles have a large divergence. But for the rest problem, the mostly present research only use traditional performance measurement to substitute for corporate governance measurement. However, with a series financial scandals happened in those years, the defects of traditional performance measurement are exposed undoubtedly. Therefore, option an appropriate measurement and using it to realize the object of corporate governance is an emergent and essential work. The thesis combines comparison research, cases research, qualitative analysis and quantitative analysis, clearly discusses the correlative problems. The full text is divided into six parts. The first section summarizes the relative results of domestic and abroad, and overviews relative theory. The second section introduces the prevalent points of corporate governance's object, and considers that the more appropriate object in this time should put shareholders'profit in domination, at thesame time give consideration to other stakeholder's profit. The third section compares and analysis the profit measurement, cash-flow measurement, MVA and EVA, then get a conclusion that EVA is the best way to measurement the object of corporate governance. The fourth section describes how to use EVA to realize the object of corporate governance. The fifth section introduces a case of Qingdao-Beer. The last section summaries the researches accomplished, and outlooks researches in the future.