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Research On Corporate Governance Problem Of China's State-controlled Listed Company

Posted on:2011-09-07Degree:MasterType:Thesis
Country:ChinaCandidate:H Y LiuFull Text:PDF
GTID:2189360308460686Subject:Accounting
Abstract/Summary:PDF Full Text Request
As the core of the modern enterprise system, sound corporate governance is necessary for company to enhance competitive ability. With china's state-owned enterprise reform and the development of capital market, corporate governance becomes the focus of attention. The governance structure of listed company has been very complete, but it doesn't play a real role.Most of China's listed companies come from the state-controlled enterprise, so state-controlled listed company holds an absolute dominant position of the capital market and plays a significant role. Because of big stock and the absence of state owner, state-controlled listed company faces more serious corporate governance problems. Therefore, this article will research state-owned companies in corporate governance issues. The discussion about how to improve the state owned listed companies corporate governance structure will have far-reaching significance to promote the development of capital markets.First, this paper analyzes the ownership structure of state-controlled listed companies, based on the theory of property rights. State-owned properties holds an absolute dominant position, due to this arrangement, the agency relationship is more complex, the right to residual claim and residual control separates at a greater extent. It will inevitably lead to all kinds of interest groups. Through analyzing the powers, responsibilities, benefits of the interest groups, we find the serious internal control problems in the state-controlled listed companies in China.Secondly, this paper analyzes that insiders-managers damage owner's interest by lawful and unlawful the means, including high job consumption, excessive and insufficient investment, earnings Management, obtaining rebates, financial fraud, misappropriation of public funds, transferring assets by related transactions.Finally, this paper proposes countermeasures to solve the corporate governance problems of China's state-controlled listed company. Mainly in two ways:First, the legal system;second, internal and external governance mechanisms, including the optimization of equity structure, the perfection of state-owned assets management system, the formation of internal balances of power, the measures of giving equity incentive to managers, improving the information disclosure system, strengthening supervision of capital market.
Keywords/Search Tags:state-controlled listed company, corporate governance, internal control, protection of shareholder's interest
PDF Full Text Request
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