The Research On The Protection Of The Interests Of Creditors On Co-governance

The investors'interest protection has been a hot issue in the theory. But the interests of creditors protection mechanisms based on a multi-disciplinary theory is rare. Therefore, this article attempts to establish the shareholders and creditors co-government mechanisms. It can be fully and effectively solve creditors and the internal information asymmetry. It can also reduce agency costs and improve corporate governance structure. The mechanisms can effectively protect the interests of creditors.In the Theoretical research, this paper is based on the property rights theory, contract theory, stakeholder theory and corporate social responsibility theory. And it is established the shareholders and creditors co-government mechanism. First, I explain the status of the interests of creditors which is in the environment of the modern enterprise system. Second, I analyze the root causes why the interests of creditors infringed. Third, I analyze the whether the environment of governance mechanisms is in place. And these analyzes led to the construction of the governance mechanisms. The theoretical analysis provides a basis for policy recommendations.In the empirical research, this paper is based on China's Shanghai-listed company data from 2005 to 2007. I use the financial data and creating regression analysis model. I verify the influence which modern corporate governance for the creditors interests protection. The results showed that stock concentration, the board the number of shares and the degree of checks and balances are significantly negatively correlated with the creditors'interest protection. While the number of the board of supervisors, revenue growth are significantly positive correlation. This shows that the behavior of corporate shareholders and directors is the important reasons to be against the interests of creditors.The Shareholders and creditors co-government mechanisms also need the state's macro system and micro-enterprise system to protect. Therefore, this article also made the following policy recommendations: The state should clear that creditor participation in the company's board of directors and board of supervisors'rights and obligations. We should strengthen the company's responsibility to creditors, reduce barriers to co-governance, strengthen the role of the meeting of creditors, remodeling corporate culture and improve of corporate financial statements.