China's Film Listed Companies' Corporate Governance Model Study

As China's first stock film "Huayi Brothers" landing GEM, China Film Company's governance was also officially into the horizon, because the company's governance quality is a key factor that investors would consider when they made investment decisions. Meanwhile, because the film and television industry is a high risk market, we have to face a high degree of demand uncertainty. Therefore it is essential for us to study based on the corporate governance theory, fully consider the special nature of film and television industry,then establish a broadly representative corporate governance model for the film industry. This work is the main issues for China's fledgling film industry, especially for the listed on and the upcoming film and television companies. By reviewed previous of the literature about corporate governance, We found that there was no literature mentioned the film and television industry for the corporate governance, so the main purpose of this paper is to use corporate governance theory, try to answer the following questions:The different market characteristics Listed companies in China's film industry faced will play what roles in the choice of governance model; which models will should be chosen to achieve the maximum value of the company; at present, China's listed film companies adopted the governance model is suitable for their own development or not, and What their future trends will to be?This paper analyzes the film and television industry with high demand uncertainty and risk characteristics of the market based on the use of a two imperfectly competitive market model, the current hotly debated corporate governance model to maximize shareholder value and stakeholder management model for a comparison, this kind of analyzing will help us to understand how the corporate model reaction when the outside environment changed. It is more dynamic reflection of the uncertainty in the face of greater market demand shocks, the two reaction mechanisms of internal governance。Meanwhile, beause of globalization of the combination of film and television industry, we consider the two models are extended to the international context, and were further analyzed。At this point, we concluded that China's current film and television industry companies to adopt a governance model to maximize shareholder value to get a larger value of the company.Finally, we introduced the HUAYI case analysis of governance, through internal and external governance of the Huayi comprehensive analysis, we found advantages and disadvantages about HUAYI's current governance, which experience is worthy to study for the overall film and television industry in China.This attempt is very shallow, but the film industry through the state of corporate governance in order, will allow us to more clearly recognize that our corporate governance status of film and television industry; and, this study can give ithe continuous development of Chinese film industry, corporate governance to provide a general direction.