The Main Issues And Resolution Consideration To Corporate Governance Of Domestic Listed Company

With the initial establishment of capital market to the flourishing development,domestic corporate governance problem is still unsettled and not improved. Recently,many scandals of listed company stipulated that the issue is very severe, andinfluenced the safety of state economy and finance. The author tried to find out thesource and essential of corporate governance, and to figure out the strategy andmethods to resolve the issue of corporate governance. The author used summarizingmethods to finish the article. The article first explained the basic issues of corporategovernance: 1. Agent cost. 2. Arrangement of entity's property 3. Insider's control.Then, the basic models and characters is introduced: According to the scope, corporategovernance can be classified by interior governance model and exterior governancemodel;According to the nations characters, corporate governance can be divided intofour types: (1) English-American Market Oriental Model (2) Japanese-German BankOriental Model (3) East-Asian Family Control Model (4) Transferring Economy Model.At last the main theme introduced the current situation and resolution consideration tothe corporate governance of domestic listed company, there are two main issuesexisted: (1) state's shareholding is too big, while the social circulating shareholding istoo tiny. The institutional investors are not active (2) the governance function of relatedright-holder is weak. To resolve these two issues: the author suggested that the maineffort is to establish agent incentive and restrictive mechanism according to statesituation;the main element to incentive mechanism is to adopt management's stockoption policy;the main elements to restrictive mechanism is to perfect capital market,manager market, independent director policy, commercial bank(creditor) mechanism.