The Cost Of Corporate Governance Re-definition Of The Status Quo With The Chinese Listed Companies

The corporate governance has already been widely concerned in recent years, but the research regarding the corporate governance costs is relatively few. The companies going on the market are at the important position in each profession of China, therefore, the research about the corporate governance costs of the companies going on the market has the significance. The goal to write this article mainly includes two aspects: One is to carry on a concept combing about corporate governance costs, and the other is the research of the governance costs of the companies going on the market as well as the relations between the governance costs they pay and economical achievements they reach. In order to understand the company's governance costs level, we had adopted the questionnaire survey form, which carry on the investigation about more than 1,300 companies' governance costs going on the market.Through the literature summary we discovered that formerly the majority viewpoint was to act the agency costs as an important constituent of the corporate governance costs. But the corporate governance is created as a result of separation of the property rights and the right of management. The agency costs are only an object of the corporate governance; in other words, the main goal of corporate governance is to reduce the agency cost. Therefore the corporate governance costs refer to the costs spent in the implementation process of corporate governance. According to the difference of implementation subject, the corporate governance costs can be divided into several parts, such as the costs paid by the company itself, the costs paid by the market, the costs paid by the supervising organization and the costs paid by the investor. The corporate governance costs studied in this article is a narrow sense cost which is only parts of the costs paid by the company itself and it is mainly aimed at the company going on the market. In other words, the corporate governance costs is brought by obeying "the Governance Criterion to the Company Going on the Market" promulgated by the supervising organization to implement the corporate governance. Through investigation we discovered that its average level goes beyond...