The Study On Corporate Governance Of Lengshuijiang Rural Credit Cooperative

Since 1996 the rural credit cooperatives were made continuous development in the reform. However, some rural credit cooperatives in China deep-rooted contradictions and problems remain unresolved, such as property rights are still not clear, information disclosure system is not perfect and so on. How to effectively improve the corporate governance structure of rural credit cooperatives, to improve their core competitiveness, is still a major topic of current research. This article aims to solve the problem of improving the corporate governance structure of Lengshuijiang rural credit cooperatives.First, this paper review and sort out the domestic and international literature research of corporate governance. This paper described the three corporate governance theories: a modern property rights theory, corporate governance theory, and cooperation in finance theory, as this study has laid a theoretical foundation.Secondly, this paper analyzed the status of Lengshuijiang rural credit cooperatives. After reviewed the reform process of Lengshuijiang rural credit cooperatives and describes the status of its operations, it analyzed the problems of Lengshuijiang rural credit cooperatives in corporate governance.Third, through the payment matrix, three-stage dynamic game, this paper deeply analyzed the cooperatives of government and rural credit, financial regulators and rural credit, distribution of interests between owners and managers of rural credit and system implementation costs and benefits. That changes in the rural credit system should strengthen the law; design inspired diversified management compensation structure to improve performance; build a sound regulatory system, reduce duplication of cross-agency regulatory actions, saving monitoring costs, improve regulatory efficiency.Fourth, this paper introduced the corporate governance of foreign experience, through both comparative analysis of corporate governance and integration of reference, Leng -shui jiang rural credit cooperatives corporate governance should be clear definition of property rights, the establishment of the corresponding residual claim and residual control of the executive compensation mechanism to create dynamic, moderate concentration of corporate ownership.Finally, this paper gives some advice. Rural credit cooperatives must made to optimize the ownership structure, sound management system, the implementation of social affairs public, attention to personnel training and improving the external governance of rural credit cooperatives and other means to further improve the corporate governance structure.