The Property Rights Contracts And The Disposal Of Financial Governance Rights

New Institutional Economics(NIE) initiated by Coase and so on, starting with the nature of firm. provides a new angle of view for us to analyze the essence of the evolution of firm. But their elaboration is defective. The defects of those theories of firm contracts are in that ignored the property rights of firm. So people cannot define the firm correctly from the view of contract. Property rights are the premise of the firm contract and the content of the firm contract. We consider that only to start whit the property rights can we definite the firm form the view of contract correctly. So, we consider that the firm property rights contract is the one holding the special ownership of the asset refer to the firm residual property rights.Based on listed corporations and the theory of property rights contracts, the author borrowed the result of the financial governance research from all over the world, then analyzed the property rights structure and disposal of financial governance rights in China's listed corporations. The object of deciding capital structure is to make residual rights of financial control match residual claims best. But due to our immature capital market and the phenomenon of insider control, decision makers of property rights structure have an extreme favor to share financing, which has been proved by empirical data from listed corporations. Certainly, the deciding property rights structure of listed corporations is also affected by the disposition and efficiency of financial governance rights. Empirical research showed that the ratio of assets to liabilities and operating performance are significantly negative. It demonstrated that the function of liability in China's corporation governance is faint.Finally, the paper put forward several suggestions to optimize corporations'property rights structure and financial governance, including constructing internal mechanism of financial governance, using and consummating the appraisal function of capital market adequately in China, improving withdrawal and bankruptcy mechanism, and improving system of relevant laws and rules and so on.