Research On The Promoting Ways Of Governance Performance Of CACG

For more than30years of economic reform (from1978), China has made remarkable achievements, and created a large number of large state-owned group companies. These group companies have become the most fundamental guarantees for China’s sustained and stale economic growth.As the internationalization process of Chinese enterprises gradually speed up, in order to strengthen the international competitiveness of enterprises, to the challenge of new economy and economic globalization, these large state-owned group companies via mergers and acquisitions(referred as M&A)and other means, continually expand the scale of enterprise, develop in the direction of collectivization rapidly, in order to obtain economies of scale, reduce costs, share critical resources, and enhance market competitiveness. However, group’s corporate governance problems gradually exposed with the deepening of the development. At present in China, the study of large state-owned group company governance is not enough in-depth. With the development of the group companies, the research of means to enhance the large state-owned groups corporate governance performance, has an important theoretical and practical significance.For corporate governance, many scholars at home and abroad have in-depth research, including ownership structure, the operation of the three boards, incentive system,etc. Scholars have tried to figure out a rule to summarize the ways to improve corporate governance performance, but the conclusions failed to get consistent, also they did not find an universal standard criterion or rule. Investigate its reasons, I think there are two. First of all, the influencing factors of corporate governance are too much, and most factors are matter of degree. In the board of directors governance, for example, simple about the scale of the board of directors or such problems as the number of independent directors, have different standards because of the different industry, scale, the external environment and so on of the study objects. Secondly, most of the studies are concerned about the governance structure impact on governance performance, but a good governance structure does not necessarily bring about good governance performance, it also requires the management support system which is combined with the governance structure.This article selects a large state-owned group company CACG as a case. First of all, from the aspects of governance structure, investigate and analyze the company present situation, and study corporate governance structure present situation from equity structure, three boards present status, the executive incentive. Discuss corporate governance performance present situation from the four aspects of profitability, agency cost, social responsibility, governance risk, and find out the problems existing in the governance, and puts forward ways to improve CACG governance performance.In order to achieve good governance performance, the company should establish an effective governance support system under the established governance structure. This paper discusses the concept of corporation governance support system, and the establishment steps of the governance support system: positioning of the headquarters functions and designing of the core function, defining the terms of the relationship of headquarters and members of the unit, constructing the function system. And from the three aspects, respectively discusses the construction ways to governance support system. On the premise of combining the reality of CACG, design the company’s governance support system from five aspects.Research for governance performance of China’s large state-owned (group) companies helps to guide China’s state-owned enterprises to improve the management, control and coordination mechanism, realize of China’s state-owned enterprises reform, construct of a modern enterprise system, and improve the enterprise market competitiveness. In addition, the result of this research applies not only to enhance the governance performance of large state-owned (group) companies, at the same time, it is useful for the governance performance improvement of group companies which have different forms of ownership or in the different field.