External Constraints On Corporate Governance Structure

Although the modern theory of corporate governance doesn't neglect the external governance while it focuses on the internal governance, actually researchers pay sole attention to the influence of single system(internal governance) on the corporate governance when they carry out their research on the design of various governance. They think the systematic design can independently solve the problems of corporate governance, or regard the internal governance as the only solution for the agency problem, and deny the direct benefit of external control to the solution of that problem.This article holds the opinion that the special system of external control builds the external system of corporate governance, as well as the external control frame for the internal governance system. It, more or less, determines the evolution of internal governance system. At the same time, the content and the value of external control system is closely related with the corporate internal governance. Although the external control governance cannot completely excel the failure of internal governance, it can improve the internal governance and do some pre-fix for the inefficiency of internal governance. In addition, the external control doesn't equal with the external governance. Legal system, supervision and social ethics also belong to the external control system.This article researches the corporate governance brought by the external control in China, especially the influence of external control on the structure of internal corporate governance. In fact, it wants to design a frame for China's enterprises, which not only suits the SOE but also suits the private enterprises. It provides a probable standard for the future governance structure of China's enterprises.