Research On Financial Governance Mechanism Of Listed Companies

Corporate governance theory was created in 1970s.As soon as it was introduced into China in 1980s, it became a focal topic in the theory field. Some financial researchers of China put forward financial governance theory in view of the current theoretic research achievement in corporate governance. Financial governance is a set of arrangements which standardize the right, obligation and interest and coordinate the financial conflicts of stakeholders by reasonable allocation of financial rights among stakeholders. Listed companies are joints of a series of contracts and stakeholders have invested exclusive assets into these companies according to the contracts. The stakeholders have interest in these companies so they have the will to participate into the financial governance of the companies. However, the nature of the exclusive assets that stakeholders have invested differ from each other, so stakeholders have different status and the nature and amount of the financial rights that they own vary a lot. Allocation of financial rights among stakeholders become the central issue of financial governance and is also the core of financial governance mechanism. The realization of the goal of financial governance depends on financial governance mechanism, which is a system of financial activities that standardize behaviors and resolve financial conflicts of stakeholders by defining the status and role of stakeholders in the flow and segmentation of financial rights.Based on capital theory, enterprise contracts theory, property right theory and principal– agent theory, the thesis defines the concept and analyses the essence of financial governance deeply through comparison of financial governance and corporate governance, financial management. By researching the concept of financial governance mechanism and the subject, object and target of financial governance, taking the allocation of financial rights as the core, it explicates the content of financial governance mechanism in listed companies and sets up the financial governance mechanism suitable for listed companies in China to help solve the problem of financial governance mechanism of China's listed companies.With the rapid development of the capital market in China, an increasing number of problems are revealed in financial governance of listed companies. In response to the problems, the thesis makes an in-depth analysis of these problems and provides some measures to solve these problems to improve the efficiency of financial governance of listed companies.