Listed Companies Financial Governance Efficiency Goals

At the beginning of the21st century, the United States WorldCom, Xerox, AOL Time Warner, the world-renowned company’s financial fraud-prone, to the Enron case and to the summit. In China, Yinguangxia,Oriental Amoi Electronics and many other listed companies has also undergone a financial fraud. Occurrence of this series of cases has prompted theorists and practitioners began to think deeply financial governance. Western theorists and practitioners through a comprehensive study of the theory of corporate governance and corporate finance theory formed the basis of financial governance theory. Chinese scholars on the basis of foreign research and driven by our finance practice in terms of financial governance body, the object of financial governance, financial governance objectives, financial governance research content of financial governance, initially formed in line with the actual needs of China’s financial governance theory. Overall, however, because the study is shorter, less comprehensive research perspective, the entire study to be further enriched and developed.Trace the origin, efficiency is the main core and the study of economics and management, and financial governance efficiency is the fundamental objective of financial governance. In this paper, redefined the concept of financial governance connotation and denotation, depth discussion of various elements of financial governance of listed companies (financial governance, financial governance, financial governance model) and its impact on the efficiency of financial governance process; through learning German day, Britain and other countries listed company’s financial governance, combined with the unique characteristics of Chinese listed companies, to build a "shareholder-oriented, stakeholder participation," the financial Governance; collect relevant data Chinese listed companies’financial governance, the efficiency of the governance model of multiple regression analysis, and gives an empirical test; same time, by selecting sectors and asset size indicators on the efficiency of financial governance of listed companies were classified research.Based on the above research motivation, this thesis chapters arrangements and internal relations as follows:This paper argues that financial governance system is composed of financial governance, financial governance and financial governance model of three parts, the basic logic of the relationship between the three are:financial governance structure is the basis of financial governance efficiency play, which determines the financial governance mechanisms select financial governance model; financial governance mechanism is intrinsic financial governance regulating device to guide the behavior of financial governance; financial governance structure is determined by the direct financial governance and financial governance mechanism by guidance on specific subjects related to the conduct of financial correction, constraints. The combined effect of the three, to improve the efficiency of financial governance of listed companies play a decisive role.The main contents are:Financial governance structure of listed companies under efficiency goals.First of all participating subjects from the definition of financial governance of listed companies, the total cost to the various stakeholders to participate in a minimum of constraint conditions, to determine the participation of the main dimensions of financial governance, and how to analyze its financial power configuration. Then study the capital structure of listed company’s financial governance. Were combing the impact of the financial mechanism of the capital structure, ownership structure and debt structure on the efficiency of financial governance, ownership structure and debt structure and financial governance efficiency and a detailed analysis of the relationship.Financial governance mechanisms of listed companies under efficiency goals. First, the connotation of financial governance mechanisms for interpretation, put forward primarily by the financial governance of financial governance decision-making mechanism, the financial incentive and restraint mechanisms of governance and financial information disclosure mechanism composed and analyzed by one of these three financial governance mechanism is to protect the financial governance efficiency effective release of internal logic.And empirical research of listed companies under the theory of financial governance efficiency goals. A typical analysis of the international advanced financial governance, such as "creditor-led" Financial Governance in Germany and Japan, the U.S. and Japan "operator-led" financial governance, as well as to present the prevalence of "stakeholder co-governance" model Comparative analysis of the impact of these three modes of financial governance efficiency path, the impact of the results. Combined with previously proposed to define the subject of financial governance, financial governance of listed companies proposed model should be led by the shareholders, creditors, managers, employees, the Board of Supervisors as stakeholders to participate in the model. Regression analysis of this model, select the A-share companies listed in Shanghai and Shenzhen motherboard before the end of2007a total of1265as the research sample, using data for the December31,2008-2012on December31five consecutive panel data, this empirical model, whereby discuss the applicability of the model constructed in this article.Through research, the following conclusions:(1) The rational allocation ofthe organizational structure of financial governanceDefine moderate financial governance body dimensions, the main shareholders, creditors, employees, managers and board of supervisors.(2)Reasonably constitute Financial Governance Capital Structure The ownership structure, the current draw for Chinese listed companies to maintain their ownership concentration financial performance continues to be the optimal choice; debt structure, state the nature of the company’s financial creditors in fact a lack of governance "motivation" social individual creditors because the information is not symmetry, and other factors limit their level of knowledge,"ability to execute" their rights are subject to certain limitations creditors.(3) Perfect financial governance mechanisms designedCompany financial power configuration is a series of institutional arrangements activity, and in order to ensure that these activities can play its due effect, you must have the appropriate mechanisms for regulation and norms, that is, to have a reasonable assurance of financial governance machine production.(4) Construction of appropriate financial governanceDifferent effects of each listed company’s financial governance factors, but also because of its asset size and the industry in which there are differences, the efficiency of financial governance of listed companies will have a difference, and then used to investigate the applicability of this article to build financial governance model.It was found that financial governance in ownership concentration is relatively high, relatively good degree of market sectors and asset size is relatively large (taking the natural logarithm greater than22) the company’s financial governance efficiency is higher.Papers in the following aspects of the new academic study:(1) to efficiently target the main line depth study of the company’s financial management system market.Financial governance of listed companies, the goal is efficiency, in order to maximize stakeholder value and maximizing wealth for the target company, rather than the company’s social responsibility objectives, a number of financial governance indicators can be quantitative analysis; As a long-term pursuit of efficiency objectives, financial governance is a long-term dynamic process, according to the different needs of the company’s development stage and make the appropriate adjustments, rather than short-term goals can be achieved; to efficiency as the company’s overall development goals because of the merits of the company’s financial governance, ultimately reflected in financial governance-related indicators, or reduce the cost of financial governance, financial governance or raise revenue, in short, under certain conditions, minimizing costs or gains under certain conditions, the cost of revenue maximization.(2) expand the use of new research methods. Chapter3to determine the best financial governance body dimensions using marginal analysis. In the company’s financial governance, financial governance body should not be involved in too little interest in other subjects are deprived, so that their enthusiasm was dampened, but not too much, because different subjects have their different interests to pursue, making it easy to reduce the efficiency of the decision-making, financial governance costs increase, so too much or too little can cause reduced efficiency of financial governance, the paper finally selected by the shareholders, creditors, supervisors, workers, managers participate as subjects; studies have mostly used cross-sectional data or time series data analysis, time series and panel data section of two dimensions. Using these panel data regression analysis using Eviews to test the efficiency of different financial governance of listed companies with financial governance is how to influence factors change.(3) constructed by shareholders as the leading stakeholders to participate in the financial governance. Learn from the Anglo-American-led national operators, the creditor countries, Germany and Japan-bank-based financial governance, as well as property rights and business interests between stakeholders concerned stakeholders allocation of financial governance, combined with China’s listed companies status of the actual situation," dominance", while other stakeholders as defined in accordance with Chapter3of the range, such as creditors, employees, board of supervisors and managers to participate, according to this model to strengthen the financial governance of listed companies should be more promote financial governance of listed companies increased efficiency. In particular, the market is not high for a state-owned holding companies, financial rights can play a stakeholder constraint checks and balances to prevent operators serving over-consumption, major shareholders violated the interests of small shareholders frequent phenomenon.(4) Select a different variable to reflect the costs and benefits of financial governance. Many studies using Tobin’s Q value (TQ) and ROE (ROE), as reflected in the financial variable gain control, select all of its assets in cash recoveries (ACRR), operating cash total debt ratio (OCLP) and so reflect the financial governance variable costs. However, China’s securities market is not mature enough, did not return to a rational stock investment, making the stock price does not correctly reflect the real situation of the company, and ROE of listed companies SFC initial public offering (IPO), placement and special treatment (ST) assessment indicators, this indicator of earnings management is severe, compared to ROE, ROA and more non-manipulative, with Tobin Q value and ROE to reflect the efficiency of financial governance of listed companies is not very appropriate; paper selected total assets Net profit margin (ROA) and earnings per share (EPS) to reflect the financial governance income as explanatory variables, the efficiency of financial governance factors influence from many find that the explanatory variables, such as the ownership structure, debt structure, capital structure, board of supervisors and management holdings and other aspects of layers, specifically selected11indicators, while the total asset size and industry as control variables to be analyzed.