The Study Of Irrational Financing Of Listed Companies In China And The Relationship Between The Corporate Governance

There exists seriously irrational financing behaviors everywhere in listed companies in our country, with one problem is that stock right financing goes to favor while another that over-financing of these public companies. With irrational financing emerged onto surface, our markets for capitalism frequently occurred such matters as substantial shareholders occupying and embezzling funds from listed companies, their actions to cheat medium and small investors, false statement by listed companies, manipulating the markets, etc. which stood in the way of the development of markets of capitalism, harmed the investors'interests, and all to all, the ultimate cause is the out-control in corporate governance. To study and seek out the solution and manage it are our chief purpose in this article.Based on the financial shock between profiteers as a fuse, it analyzes the current corporate governance mode and relevant existing problems of the listed companies in China, as well the causes of irrational financing in the fundament of corporate governance. To solute all problems, we must start with the cooperativeness within such three types of financial relationship, the ultimate goal could've been accomplished. Based on the above analysis and research, we offered some proposals below: tighten the inside men for the control, define the financial body clearly; reinforce the creditors'supervision to listed companies; invest purposely to protect the legal system, etc.