Study On Corporate Governance Problems

Corporate governance problems include two types: one is the agent type corporate governance, facing relationship between stockholder and manager; the other type is the deprivation type corporate governance. Because of insufficiency on supply of supervision of weak shareholders, supervisory department should reinforce supervision for strong shareholders. And the main characteristic of modern corporate is the separation of ownership and management power, appearing principal-agent relationship. Through analysis about traditional principal-agent model, finding out unreasonable factors, for example, expectation effectiveness function and the wealth maximum of stockholder. And it is infeasible. Because of these reasons, designing a principal-agent range model. On base of this model, to make consignor and agent aim same, to increase corporate value, put forward two ways of reducing contract effective angle, including executive stock options and construction of independent director.