Researches On Relationships Among Corporate Finance Governance And Enterprise Value

Modern enterprise is made up of a series of contracts, so each principal part is on different ground and has different interest, although all stakeholders have the power to participate in corporate governance. Within the control power remains, the power to control the finance is the core. Therefore, the assignment of financial power among principal parts becomes the primary problem. Along with the deeply development of corporate finance governance and corporate governance, the syncretized study of both gradually developed, which made the finance governance come into being and grow. As the hard core of corporate governance, could good finance governance mechanism and configuration help to increase enterprise value? What's the relationship between them? How enterprise value correlates by various finance governance variables? What are the ways to improve the level of finance governance and increase enterprise value consequently? The paper studies these problems with theory and empirical study method bases on corporate governance theory.I firstly make clear the conception of finance governance studied, and review the literature briefly. Secondly, based on the finance governance theory, I discuss it theoretically, analyze its frame class, expound finance governance through its structure and mechanism, and explain how the capital structure configures finance power by governance structure and mechanism. In the positive study part, I create the index of SFG by seven selected scientific governance variables to evaluate the corporate governance. Then by the link of SFG, I make a regression analysis of SFG with enterprise value (Tobin's Q and MVB/E). It is observed that (1) finance governance is positive to enterprise value, and is effective to enterprise value. It is to say that better corporate governance leads to better enterprise value, and the investors of our capital market are willing to pay extra value to better corporate governance. Meantime, creditor's rights in finance governance didn't work in our country, and current proportion of A stocks in our stock market now didn't improve enterprise value, which may even decrease it by enhance the power of primacy stockholder. Lastly, I raise some policies and advice based on the conclusion on the chance of improving finance governance to enterprise value.