Study Of The Governance Of Enterprise Groups

With the rapid development of information technology, the form of corporation has showed a trend of more advanced. Middle organization forms such as business group internal networks, business strategic alliance and virtual company have been important research objects, which corporate governance could not slide over. Exceeding the juridical person borderline, governance boundary has extended to the scope that corporate can control actually.As far as modern corporate is concerned, establishing business group is one of its most important ways to develop. Corporate can extend business scale through establishing subsidiaries, which means not only the distribution of organization structure, but also the spread of governance structure. So the governance of business group needs to involve not only the location of responsibility, privilege and interest in single legalist homo enterprise but also the balance of interests among companies in the internal cooperation network of business group.Analyzing the affiliation and difference between governance and management, we came to a conclusion that governance steered management and management carried out governance idea in the operation of business group. Then, from the view of transaction cost economics, we confirmed the governance boundary of business group. On the basis of these discussion, a basic theoretical structure of the governance of business group was established. After that, we explained the difference between the governance of business group and the single legalist homo enterprise governance. We also pointed out that the governance structure should adjust dynamically with the environment diversification and organization development.We introduced plenty of advanced theories into the governance system such as electronically voting system, stock-holder lawsuit system, strategic alliance relation management, relational capital and deny of juridical person personality. On the basisof these theories, we demonstrated governance mechanisms of business group in details from the following three aspects: the control mechanism of parent company, the protection mechanism of subsidiary, the cooperation mechanism of affiliated companies.According to the differences in corporate ownership, consists of board and the incentive and supervision mechanisms of business groups in the world, governance pattern of business group could be divided into three types: market-directed pattern such as United States, juridical person-directed pattern such as Germany and Japan, government-directed pattern such as South Korea. Above the comparison of these three patterns, we gained some helpful experience and lesson which would guide us to strengthen governance of Chinese business groups.Chinese business groups in the transitional economies not only have some common questions such as abnormal governance of parent-subsidiary company, but also have some special questions such as the weak ligament and serious related transaction among the members of business group. So we must construct valid governance mechanisms of business groups according to the specific circumstances of our country to realize sustainable development of Chinese business groups. As far as the present development condition of Chinese business groups is concerned, the key is choosing a reasonable centralization or decentralization system to optimize the control mechanism of parent company, regulating related transactions to optimize the protection mechanism of subsidiary, establishing networked cooperation system to optimize the cooperation mechanism of affiliated companies.