Research On The Contingency Corporate Governance Model Based On Analysis Of Relationship Of Firm Property Rights

With the development of society and economy, the importance of limited liability enterprises is increasing. According to it, corporate governance attracted more and more attention. Not only macro economy but also micro enterprise, the use of the effectiveness of corporate governance is significant. Especially to private enterprises and SOEs in China, it is an critical question to establish corporate governance that fit with each enterprise. Because of different situation in different enterprises, can't use the same corporate governance, but should use contingency governance. Aiming at this question, this paper, based on contingency management theory, discussed the kinds of corporate governance, analyzed the main factors that influence corporate governance, and established the contingency corporate governance model. Hope to provide reference to academic research and realistic practice.At first, this paper reviewed the related literature, found that the past researches have got much advancement, but have some disadvantages. Especially the past researches mainly use the listed corporations as samples; regard the separation of ownership and control as the basis, which mislead research and practice. To understand corporate governance properly, this paper started from relationship of firm property rights to carry out research.The property rights of enterprise mainly include shareholder ownership, enterprise legal person ownership. The relationship of firm property rights, which founded by shareholder ownership and enterprise legal person ownership, is the most basic firm contract. Corporate governance is the reflection of the relationship of firm property rights. The kinds of the relationship of firm property rights would decide the kinds of corporate governance. The relationship of firm property rights can be classified into three kinds: two rights joined, two rights relatively departed, and two rights absolutely departed. The difference of corporate governance is reflected by corporate governance system. The corporate governance system includes governance institution and governance mechanism. This paper mainly focused on governance decision mechanism. The kinds of corporate governance can be classified into three: shareholder governance, shareholder and manager governance, and manager governance. The classification of three kinds of corporate governance is the first part of contingency governance model.After the classification of three kinds of corporate governance, this paper reviewed contingency management theory. This paper points out the thoughts of contingency corporate governance, which stated that corporate governance should have many kinds, corporate governance is influenced by the influence factors of contingency governance, and the fitness of corporate governance kind and influence factors of contingency governance will positively related with enterprise performance.On the basis of literature review, this paper states that the most important influence factors of contingency governance are firm scale, characteristic of firm input, and shareholder background. With the development of firm scale, corporate governance should begin withshareholder governance, and to manager governance. The characteristic of firm input includes labor concentration, technology concentration, and capital concentration. This paper found that capital concentration will push firms to choose more manager governance than the other two. The effect of labor concentration and technology concentration is not significant. The shareholder background will influence corporate governance significantly. The SOEs will choose more manager governance, but private firms will choose more shareholder governance. After the classification of corporate governance and the examination of the influence factors of contingency governance, this paper proved the effectiveness of contingency governance.To further this research, this paper discussed the typical corporate governance in private firms and firms that have passed institution reform, and widely held corporations in the foreign countries.The firms owned by family and private listed firms are two kinds of model of private firms in China. The firms owned by family often have small firm scale, and use the shareholder governance. The shareholders in those firms not only owned all the shares but also managed the firms themselves. In the private listed firms in China, the founders always owned most the shares of the firms, but they sold some shares to others and gave more power to professional managers. The cooperation governance of shareholder and managers is the typical characteristic of corporate governance in the private listed corporations.The samples of widely held corporations are few in China, so this paper uses the foreign corporations as samples. According to case research of Duke Energy and research on the leading drugcorporations ot fortune 5UU, round that the corporate governance in. this kind of corporation is manager governance. In such kind of corporate governance, the shares are widely held by the pubic, and professional managers manage the corporations. The manager governance pays attention to external governance system. This paper analyzed related topics and provided some reference.At last, this paper researched the typical governance in the reformed SOEs. In the employee owned firms, employees owned the shares, and main governance team mastered the corporation. This kind of corporate governance in fact is cooperation governance. On the other hand, in the firms that owned or controlled by the State Capital, manager governance is being established, with a lot of questions unsolved.The characteristics of this research include:(l) This paper state that different firms have different situation, should use contingency governance. (2) This paper classified three kinds of corporate governance, concluded three main influence factors of contingency governance, and pointed out the contingency governance model. (3) This paper used many kinds of research methods and a lot of material. (4) This research is funded by the Education Ministry Social Science Foundation, has both academic and practical value.