The Research On Corporate Governance Of Shang Hai International Group Co. Ltd.

Shanghai international group is a municipal government investment company,which established by Shanghai city hall, directed by Shanghai Municipal Bureau ofFinance. The company is a limited company, Shanghai city hall is the only shareholderof the company. Because Shanghai international group is pure financial holdingcompany, so the company does not operate the specific business. The number of thesubsidiaries of the group is around30, and the group also shares more than10financialenterprises. The financial assets, financial shares of Shanghai International Group as apercentage of the total assets of the group and direct investment widened to65%, groupfinancial assets covering banking, trust, securities, funds, insurance, money broking,asset management, financial services and other sub-sectors. There are also someproblems in the corporate governance practice of Shanghai International Group. In orderto enhance the market competitiveness of Shanghai international group and reduce therisk factors, we must pay attention to the mechanism of corporate governance.This paper mainly analyzed four aspects of the Shanghai International Groupcorporate governance are, including the ownership structure, the Shanghai internationalgroup structure, incentive and restrictive mechanism, and coordination mechanism. Thispaper analyzed of the status of Shanghai International Group Corporation Governance,and found that there are some problems in the corporate governance of the group: singleownership structure; unreasonable board structure which mainly reflected in the staff ofthe board of directors are appointed in administrative ways, the manager and thedirectors belongs to one person; managers are appointed in the administrative ways, themarketization level of their wage is not high; the right allocation the control ofparent-subsidiary corporation is uneven, agent roles conflict. In view of the aboveproblems, the author offered some proposals on the corporate governance of Shanghaiinternational group which respectively are the construction of diversified ownershipstructure; broaden sources to avoid the director, manager of the two level-one; marketfor managers of the personnel selection and incentive mechanism; reasonable controlover the distribution of the parent and subsidiary company. I hope the empirical analysis on Shanghai international group of corporate governance will benefit the researcher ofthe financial holding company in the future.