Farmer Cooperatives Of Financial Governance

In recent years, the mode of operation of farmers cooperatives more inclined to "corporatization", followed by a series of internal governance, financial governance of cooperatives is one of the most important aspects. Major study of financial governance of cooperatives through the rational allocation of property rights, capital structure optimization, incentive and monitoring mechanisms of the sound quality of financial information to improve financial governance of cooperatives to improve the efficiency and effectiveness.In this paper, the nature of the starting cooperative economic organizations, namely the first of cooperatives "company" essence, then discusses the existence of farmer cooperatives also not clear property rights, agency costs, and "internal control" and, therefore, need to co-operatives for financial management, and can draw on already very mature for financial governance.Farmer cooperatives financial management of capital structure is the basis for governance is the main financial power behind the various funds of interdependence, the interaction of an interest allocation pattern, which constitutes a financial management structure and to some extent, determines the control performance. This analysis of farmer cooperatives in the treatment effect of capital structure based on the analysis of the current capital structure of farmer cooperatives status and causes of, and optimize the capital structure proposed measures to control effects.Incentive and monitoring mechanisms is a problem in two aspects. Incentive mechanism is effective for financial management subject to arouse, engage their participation in governance and business initiatives for enterprises to create greater financial benefits, supervision of financial management is effective control of the main acts to promote governance body to do his duty. As the special nature of cooperatives (two-way principal-agent mechanism), its financial management and supervision of incentive and co-managers of the need for members at the same time, and its incentives and ways and means of monitoring has its uniqueness.Financial information governance is an important aspect of financial management, high-quality financial information will not only help to improve the efficiency of financial governance, but also can enhance trust in farmer cooperatives in the external force. To improve the quality of financial information of cooperatives, need to improve the function of the Council and the Board of Supervisors to strengthen government oversight, improve the quality of co-operatives, and many other financial and accounting personnel were.