| Corporate governance has recently become an important issue in corporate finance realm. Governance structure and governance mechanism, both internal and external, have an important impact on the performance of the company.For decades, China's capital market and listed companies are troubled by the split share structure. Along with the reform of non-tradable shares, the split share structure of listed companies in China was finally resolved. After the all-circulation of non-tradable shares, the capital market will usher in a new development, there will be new corporate governance standards for listed companies, as well, corporate governance of listed companies in China will have new focus.Based on the basic theories of corporate governance, we analysis the damage of split share structure to the capital market, including the lack of common interests, the absence of pricing function, the uncompleted disclosure of information, the misconduct of MA, and the rent seeking phenomena of the authorities as well. Meanwhile, the split share structure also damage the listed companies including irrational share structure, ineffective external governance mechanisms, lack of incentives and so on.On this basis, and in conjunction with the reform, we put forward the significance of all-circulation to China's capital market as well as the listed companies. For the capital market, it will restore its pricing mechanism, realize common interests, and form a more effective governance mechanism. For listed companies, that will contribute to enhancing the protection of the rights of small and medium investors, promoting investor relations management, perfecting the incentive mechanism and MA ,endowing institutional investors the rights to play a role in the capital markets. Better corporate governance results in better performance of China's listed companies, thereby enhancing the value of the whole market. Finally, we discuss the new standards of corporate governance under all-circulation. |
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