A Research On Corporate Governance Mechanism Of Mncs' Subsidiary Companies

The research of corporate governance inside our country at present is focused on the public listed companies in the capital market of China and the companies of western countries, which the research objects are limited in domestic companies. While the research on corporate governance of multinational companies whose organizational boundary spans national boundary is very few. The article has expanded the research field of corporate governance from the single enterprise's governance to the complicated MNC's governance. By defining the MNC's governance boundary, discussing the particularity of MNC's governance, and studying on MNC's governance structure and pattern, the article has built a basic framework of the research on MNC's governance and done an empirical research by example of the corporate governance of MNC's subsidiaries in China, and put forward some policy suggestion to the corporate governance of Chinese enterprises' multinational operation. As for researching method, the article has taken comparative analysis, geometrical analysis and empirical analysis. The conclusions of the research include: the expanding of MNC's organizational boundary has aroused a series of variances of corporate governance; the basic characteristic of MNC's governance is corporate governance modality diversification under the parent company's unified management; the difference on the controlling methods of parent company over subsidiaries and the extent of subsidiaries' independent decision-making lead to the different pattern of MNC's subsidiaries governance.