Study Of The Financial Problems Of The Governance Structure Of Listed Companies

Corporate governance has always been a heated-discussed problem both in the western countries where the public corporation has been in existence for nearly 200 years and in the transforming countries typified by the east-European countries and China. The president of World Bank said:"The consummate corporate governance is as important as the public governance." The improvement of corporate governance affects the micro mechanism and the competitiveness of all the corporations. So corporate governance has great meanings to the stability and development of economy and finance.As the model of the whole capital market,listed companies' managerial experience has been followed by the private enterprise. Presently,there are about 1000 listed companies in China. Most of the listed companies came from the stated enterprises, which had many problems in the corporate governance such as the absence of owner and operator's control. A great deal of vicious affairs on the capital market indicates that listed companies' misdeed is related to the limitation of corporate governance.Corporate governance is a systematic project, which covers human resource management, incentive system of distribution of income, financial rules, corporate culture and other systems. Focusing on the restriction of responsibility,right and profit, the basic rules of corporate governance neglect financial rules and financial control. Finance is the basis of company, and the state of the corporate governance will ultimately be shown by the financial information. In addition, it is much easier to get financial information than other information. Therefore, it is necessary to analyze the corporate governance from a financial aspect andcommit us to search a financial way to promote the innovation of corporate governance.The core of corporate governance is to advance the efficiency of making use of capital and controlling the process. The design of financial mechanism is the priority to the whole system. So it is the author's intention to design financial mechanism, which is helpful to achieve the target of corporate governance innovation. Because the whole financial system is too tremendous to be contained by a postgraduate's thesis, the author only analyzes some typical financial problems in corporate governance and puts forward the solution.The thesis consists of five chapters:Chapter 1 Corporate governance and the financial mechanismThis chapter is regarded as the logic starting point of the full thesis and theoretical foundation. It begins with the intension and extension of corporate governance, and analyzes the financial characteristic of corporate governance modes to provide the frame of reference for our innovation. The author points out that corporate governance is a systematic project whose essence is to control the capital operation. The core of corporate governance is to advance the efficiency of making use of capital and controlling the process. Therefore, the financial governance is the only way that promotes the company corporate governance.The author has described the relationship between corporate governance and financial management in detail and points out that it is necessary to set up a multilayered financial mechanism of management in conformity with corporate governance. According to the subject of financial management, the author defines investor's financial management, operator's financial management and professional financial management.Chapter 2 Corporate governance and financial problem of listed company In this part, some practical problems in corporate governance in China and the importance of perfecting the structure are both pointed out. The listed companies demonstrate some problems in their financial mechanism. Firstly, the investor's financial management can't encourage and supervise the operator effectively. Secondly, the operator's financial management is controlled to make profit for the operators themselves at a price of shareholders. Thirdly, the problems in the investo...