Research On The Financial Control Based On Corporate Governance

Corporate Governance theory is new and fast-developed,and has become the critical factor that effects the operation result, so does the finance. Based on this consideration, the author brings the influence caused by finance practice to the choices of finance controlling.There are five chapters in this thesis:Chapter 1: The introduction of theories and the definition of concepts. This chapter sets forth the theory foundation of main concepts, and states the clear definitions. With the separation of ownership and management, Corporate Governance, as the main reason causing the big contrast between low competitiveness of corporate and high income of management, got the attention of many researchers. From the perspective of the major powers divided, Corporate Governance can be defined as the system of checks and balances which conducts and controls the management, and the Board is the principal. Compared to this, Board-level finance goal is to maximize the value of corporate, which is the only way to maximize the benefit to the owners. It emphasized the balance of agency costs and the financial benefit.Chapter 2: The logic starting point of research on the relation of Corporate Governance and Financial Control. There are three clues in this chapter. Clue 1: Capital has become the common focus of attention which links the investors and financial control, and the corporate governance and financial control are in a similar environment. Clue 2: the remaining controlling power and claim; Clue 3: the board.Chapter 3: The possible Financial Control problem in the Corporate Governance environment. This chapter makes a list for the effect based on the Corporate Governance caused by every kind of financial practice. The Board-level financial practice includes establishing capital structure and ownership structure, inspiring with the management, investing and income distributing. Every kind of financial practice will face the new measurement on income and cost. Chapter 4: The Financial Control choices based on Corporate Governance. In this chapter, mechanism and professional characteristics become the two important parts in the Financial Control building. Through graphic analysis, the conclusion is: Financial practice has an function on the control of Corporate Governance, and the Financial Control under Corporate Governance is the large balance after numerous small balances.Two cases are put to assisting prove the conclusion. One is to make a contrast of two companies which has debt or not; another one is to analyze the differences after the change of ownership structure.Chapter 5: The tag. There are three conclusions in this chapter. There are external limits for the Board to realize Corporate Governance; the owners who pay attention to the long run development can make the best governance; the controlling on cash flow can save the agency cost much.The author thinks the new ideas of this thesis are as follows:1,Taking the effect on Corporate Governance caused by the traditional financial practices into the consideration of making financial decisions is an important supplement to the Financial Control system and a great significance to the subject constructing.2,Main points: Financial control behavior takes the balance on the income and cost as its special decision-making method, which can be used in Corporate Governance.3,research method: In the process of proving, picture information and graph are used to assist the normative research. And the cases are used not only to prove the theory, but also supply the possible choices to Financial Control.