The Governance Of Dairy-united Financing Contract

In the serious condition which China’s dairy industry is confronted with, the construction of milk source base has become a top priority. At the background of the current dairy industrialization, the model of "dairy-united" with unique highlight attracts people’s attention. Inner Mongolia milk league technology Co., LTD.(referred to as "Dairy-united"), as the founder and promoter of the special model, has its organization mode innovation to penetrate the enterprise’s financing process. Therefore, the research on the financing contract of Dairy-united has certain application value.The paper takes Dairy-united, a typical representative of agricultural kind of small medium-sized enterprises, as an example, introduces its development history and status and analyses financing process of Dairy-united which reflects the innovation of its organization mode. Based on contract theory, modern enterprise theory and financing theory, the paper discusses the selection and governance of Dairy-united financing contract and further proposes auctorial views of Dairy-united financing contract.This paper includes the following five parts:Part one:introduction. This part introduces the background of writing, the domestic and foreign relevant literature review, the research significance and the writing framework.Part two:theoretical analysis. This part analyses the contractual attribute of financing, the incompleteness of financing contracts and financing contract arrangements, which constitutes theoretical basis of the paper.Part three:the selection of Dairy-united financing contract. This part expounds the development history and status of Dairy-united. Then, based on the incomplete contract, this part analyses the movement foundation, cost effectiveness and enforcement mechanism of the financing contract. Finally, this part explains Dairy-united financing contract is essentially a creditor’s contract and the financing contract reflects the integration process of Dairy-united financing and investment.Part four:the governance of Dairy-united financing contract. This part analyses the effect which the characteristic of investment assets has on Dairy-united financing contract. Then, based on the incomplete contract, this part expounds how this financing contract allocates the residual rights of control and explains contingent governance of the creditor’s contract. Finally, this part analyses interest conflicts between different creditors of Dairy-united.Part five:the conclusion of the case. This part points out the significance and limitation of Dairy-united financing contract, and puts forward some suggestions for its financing contract.Based on the case study method, the paper selects Dairy-united, A typical representative of the enterprise, to do case study. The author obtains first-hand information through observation and interview on field survey. This paper, according to correlative theories, analyses the financing contract of Dairy-united. The innovation of this paper is that the author points out the particularity and essence of Dairy-united financing contract and explains the Governance effect of Dairy-united financing contract.