The Study On The Construction Of Corporate Governance Culture In The Private Listed Firms

In 1992, the first private enterprise "Shen Hua Yuan" got into the stock market. This meant the prologue of private enterprise listing has been pulled. For more than 10 years, private enterprise listing experiences a winding process, including beginning, stagnation, development and fast development. Now, the private listed firms have become an important part on the stock market. As the product of China's private economy development and the development of stock market, the private listed firms are the leader of the private enterprise system innovation and the private economy development, and make important contributions to national economic development. For meeting the need to establish a modern enterprise system and corporate governance, the private listed firms have established relatively complete corporate governance in form, i.e. Board of Shareholder, Board of Director, Board of Supervisor and Management. To a certain extent, this solves the principal-agent problem in the corporate governance process. But, in fact, some the private listed firms don't combine advanced model of corporate governance with the actual situation of the private listed firms, which results in the nominal role of Board of Shareholder, Board of Director and Board of Supervisor and inefficient corporate governance. The reason is that the private listed firms pay more attention to the hard constraints of corporate governance guidelines, but neglect the soft constraints of corporate governance culture. The construction of corporate governance culture can meet the need of economic globalization, knowledge economy and self-development, can help to establish the effective corporate governance, improve corporate governance efficiency, and promote the sustainable development of firms. Represented by Professor Li Weian, Corporate Governance Principles Research Group of China from Nankai University first puts forward, "the construction of corporate governance culture is inevitable". They think corporate governance is institution arrangements for right allocation. The efficiency of corporate governance depends not only on laws, regulations and other formal system, but also on the corporate governance culture formed in the firms, operating process. Aggressive, moderate, strict and self-disciplined corporate governance culture can help improve corporate governance efficiency and enhance international competence.As "the construction of corporate governance culture is inevitable " and the problems that exist in corporate governance of the private listed firms, the paper is based on theories of corporate governance, leads to the central topic --corporate governance culture by analyzing the role of culture, then explains its definition, hierarchical structure and the relation and differences between corporate governance culture and corporate culture to make the concept clear. Then apply corporate governance culture to the private listed firms, and put forward the basic ideas of the construction of corporate governance culture—set up good core values, establish the system of corporate governance culture, reasonable property structure and effective incentive and restraint mechanisms for managers. The paper is aimed at making people recognize the construction of corporate governance culture is very important to the development of the private listed firms, and give the private listed firms an idea to establish the effective corporate governance structure, improve corporate governance efficiency and enhance core competence. In the process of the construction of corporate governance culture, the paper mainly uses the qualitative method because of the characteristics of corporate governance culture and the weakness of the author. And the paper also doesn't build the quantitative model. This may increase the difficulty of constructing and managing corporate governance culture. This is the flaw of the paper.The innovation of the paper: consider the current situation of corporate governance, apply corporate governance culture to the process of corporate governance, and put forward a basic idea of constructing corporate governance culture in the private listed firms.