The Discuss About The Corporate Governance Of Chinese Security Firms

After fast development of more than ten years, the security industry in China, starting from scratch, has now grown up to a certain scale. In September 1985, on permission of People's Bank of China, Shenzhen Security Firm was established, which was the first specialized security company in China. Ever since then, the security firms in China have developed rapidly. But the development of corporate governance in Chinese security firms has lagged behind and there are still many problems.In addition to the researching content in common sense, the corporate governance of the security company must be suitable to its characteristics such as service trade, intense competition and high risk etc. As a result, there would be some specific characteristics in the corporate governance of the securities firms, including the governance authorities, structure of the creditors, knowledge concentrated trade and the principal part in the capital market. All of these would affect the corporate governance of the security firms greatly.This article follows the thread below: this article is based on the principal-agent theory, at the same time, insist that stakeholders are the real masters of the security firms and maximizing the interests of stakeholders is the ultimate goal in security corporate governance. This article is divided into four chapters besides the introduction:ChapterⅠ: the general theory of corporate governance. In this chapter, a clear definition of corporate governance is firstly given, which include two levels: the internal governance structure and the external governance mechanism, and then analyze the core of corporate governance: operators'constraints and incentives from shareholders and creditors. At the end, two international typical corporate governance models are analyzed and compared.Chapter II: Indicating the characteristics of the Security companies. Compared with the general industrial and commercial enterprises, the security companies, as a special kind of enterprises, have their own personalities; this chapter mainly describes the operating characteristics and the industrial nature.Chapter III: Inspecting the current status of corporate governance of Chinese security companies. After comparatively analyzing the differences in the internal and the external governance between domestic security companies and the foreign, the main problems of the corporate governance of Chinese Security firms are revealed, such as ,in the internal aspect ,the shareholder structure is irrational, the phenomena that the majority of shareholders control the company is serious, the Board system is plagued with problems, the status of the board of supervisors is not clear and the lack of an effective incentive mechanism ;and on the external hand , the lack of manager market and take-over mechanism in stock and debt.Chapter IV: the revolutions of the corporate governance of Chinese security firms. To resolve the issues existing in corporate governance of Chinese security firms, it is need not only to enhance the quality of internal governance structure, including the equity structure of a company and the capital structure, incentive and restraint mechanism, but also necessary to introduce external governance mechanisms, in view of the specialty of security companies, creditors governance mechanism should be introduced.The innovation of this article is mainly to describe the governance characteristics of security companies after analyzing the features of security industry and the operating characteristics of the security firms in chapter. On the basis of this particularity, to perfect the corporate governance of security companies, in addition to improve the internal governance structure of security companies, it is important to introduce the creditors governance mechanism, which not only contribute to raise the level of the corporate governance of Chinese security firms, but also promote the development of the Chinese security market.