Research On Efficiency Evaluation Model Of Corporate Governance: Establishment,Assessment And Implication

Corporate Governance is the product of the development of modern enterprise. With the growing separation of ownership and management, corporate governance has been playing an increasingly important role. Based on specific economic, political and cultural background, every country develops its own model of corporate governance. There are always some advantages and disadvantages in every corporate governance model, and the model in a country is not always static. Therefore, learning from other models' strong points to improve domestic corporate governance is a common choice to every country.In order to improve corporate governance better, it is necessary to assess every model's advantages and disadvantages , and it requires a proper framework be set up to evaluate the governance efficiency. In the meanwhile, the formation and development of a country's corporate governance model is always associated with specific environmental background. A model which shows great effectiveness in a certain environment does not work necessarily the same in other circumstances. Thus it puts forward a higher request to governance efficiency assessment, and requires us to take into account the role of the environmental impact in assessment process to reflect the actual governance efficiency more appropriately.Based on existing literature of corporate governance, this paper extracts some typical indicators which influence the efficiency of corporate governance, and set up a framework to assess governance efficiency. After three most representative models in the United States, Japan and Germany have been analyzed in detail, this paper use fuzzy comprehensive assessment to evaluate three countries' corporate governance efficiency, and the data used here is achieved by expert-investigation. In the assessment process, different weights of indicators are adopted according to each indicator's connection with market environment to reduce the environmental impact on assessment result. From the assessment, this paper gets overall corporate governance efficiency index and actual efficiency index, with environmental considerations being not drawn and drawn to the role of corporate governance respectively, and thus the comparison among various corporate governance models can be more objective. According to the comparison results of typical corporate governance models, and combining with our unique status of corporate governance in economic transition, this paper draws the progressive ideas in hopes of inspiring a certain significance to our corporate governance practice, which is to improve the corporate governance structure and internal mechanism first, and then through perfecting the market environment to improve company's capital structure and external governance mechanisms.