Study On Corporation Governance Of Domestic-funded Small And Medium-sized Insurance Companies In China

Corporate governance has been the hot spot of research in the field of economics recently. It's all because of Content about the shareholders, the operator and the staff and so on to nowadays. It is one of questions on maximizing the interests of all corporate stakeholders.Corporate governance is a one more than one angle and multi-level concept, can go to understand from narrow sense and broad sense. Narrowly-defined corporate governance refers to mechanism of owner supervision and checking manager. And Governance structure and governance mechanism, both internal and external, have been studied in broad definition of Corporate Governance.This paper analyses the corporate governance' structure from the angle of relationship of agency by agreement, interior sharing-power balance, and exterior restrictive mechanism. On the basis of basic connotation, this paper summarizes the typical corporate governance modes including centralized lead ship system and binary system. The theoretical study is preparing to realistic analysisAt the beginning of the 21st century, Chinese insurance embarked on a fast track of reform and development. The core and goal of the reforming is to build up the modern insurance business enterprise systemIn early days of reform, several large insurance companies establish and perfect corporate mechanism. Major state-owned insurance companies have successively undergone share holding system reform. Ping A Insurance Company and Pacific Insurance Company have been established insurance holding (group) companies.But all these actions were to do well the preparation work for the meeting. The reform of insurance industry was a newly started undertaking. Perfecting the corporate governance structure and promoting change of national enterprise fare system were the first task. The problem is several large insurance companies still were the focus to which all societies pay close attention. Alongside the usual captains of insurance industry, there were the numerous small and medium enterprises, which can be divided into the foreign-funded enterprise, domestic-fund enterprise. Those foreign-funded enterprises and joint ventures were China branches of Parent Corporations. To be sure, they inherited the same management style from their parent.Only domestic companies and their reform were in for a long time by negligence position. This Limited economic strength of domestic insurance companies paid more attention for market achievements and short-term profit. As a result, it did have a lot of problems in the corporate governance, and their administration mode did not work. With the founded of domestic companies, Private capital was into the real estate market.The central focus of my paper lies in development of the numerous domestic companies.This article briefly reviews the development of corporate governance, discusses the modes of corporate governance, compares the management among several foreign insurances companies and summarizes experience and lesson.Further more, it anglicizes the current situation of corporate governance in Chinese insurance industry, studies the international trend of corporate governance reform in the international insurance.At last, this article draws the conclusion about constructing a perfect corporate governance model for Chinese small and middle size insurance companies and gives some suggestions on promoting corporate governance reform of Chinese insurance industry.