Research On Mechanism Of Financial Governance Based On Human Management

There is a strong relationship between human management and mechanism of financial governance. With the integration of human management thought, mechanism of financial governance will be more complete and efficient. The paper aims to study the mechanism of financial governance based on the thought of human management, and demonstrates the point of view with case study.The paper has the main line through out the full-text to mobilize the enthusiasm of stakeholders and to achieve maximum benefit of them. Based on the idea of human management, the paper studies the configuration issues of property rights at first, it presents the idea that the basis of property right configuration for modern enterprise has changed, the paper elucidates the idea that the financial capital of corporate shareholders and creditors, market capitalization of suppliers and customers, human capital of managers and employees etc., can be used as a source of property rights. Then, the paper puts forward the idea that the configuration issues of property rights and mechanism of financial governance have to goal to maximize the interests of stakeholders of enterprises. On this basis, the paper studies the mechanism of financial governance.The paper divides the mechanism of financial governance into three parts: decision-making mechanism, financial incentives mechanism, and financial restraint mechanism. By analysing the the problems of financial decision-making mechanism, the paper points out the idea to establish a hearing system of financial decision the first time, besides, the paper points out other four proposals to construct the financial decision-making mechanism based on human management: to improve the financial decision support system, to improve the structure of board members, to improve the quality and capacity of decision-making body, and to strengthen the awareness of the main body involved in financial decision-making. References to the theories of principal-agent theory, the paper designs different financial incentive measures for different stakeholders creatively, then it points out other proposals to construct the financial incentives and restraint mechanism based on human management: to use a various incentive strategies, to establishment a humane enterprise culture, to combine the performance evaluation with the executive compensation plan of operators, to strengthen the motivation and ability for monitoring participation, and to improve the internal management control system.In addition, the author proposes some new idea for the framework of property rights configuration based on human management in the research process.