On The Problems And Solutions In Corporate Governance In China

This paper researches about some problems and solutions of corporate governance in China through and analyzing a typical model of listed corporation. The paper analyses the reasons, background and the importance of the problem of corporate governance, reviews the models of corporate governance and some problems of corporate governance in China, poses long-run and short-run solution that want to make check and balance between ownership and management and to get a best governance.The first chapter: The corporate governance is a set of regulation arrangements that line and standardize the rights, duties and benefits of stockholder, the board of directors, the board of supervisors and managers. It also includes the relations to the stack-holders and relevant laws and regulations. As the rising of the institution investors and the problem that wage increase is higher than profit increase, the corporate governance problem becomes the focus of researches. Taking a good corporate governance not only can lower agency cost and finance cost to prompt the investment value, but also is good to economy increase, capital market stability, and resources optimum disposition.The second chapter: The majority of corporate governance researches points out that no check-balance between internal stimulation and control, inefficiency in external market, and imperfection of laws and regulations all the problem can lead bad corporate governance. Principal-agency theory, manager theory, and stack-holders theory analyze and explain this problem from different aspects. Different theory models and law frames lead different models of corporategovernance. But in different models, the responsibility of the board of directors is common.The third chapter: In China market economy reform, a special corporate governance model, " three boards and four rights " , is established after studying the theories and experiences in west countries. Because of imperfect in regulation, laws and market, the model brings out lots of problems such as insider-control, excessive freedom for large stockholder, no efficiency of supervisory, hollowing out the listed firm, etc.The fourth chapter: To solve the problems of corporate governance in China, we must do these things as follow: to diminish the difference of currency stock and incurrence stock, to realize that common stocks have common rights, to perfect the stimulation and control mechanism, to perfect the-structure of the board of the directors through introducing independent directors, to perfect market system and law system.