Research On The Framework Of Financial Dynamic Governance

Financial governance is the core of corporate governance. Traditional financial governance theories focus on statistic aspects such as structure of financial governance and state of rights distribution, paying little attention to dynamic aspects. Deepening research on financial dynamic governance theory is of grate theoretic and practical significance. Above all, the paper explores the theoretic bases of financial dynamic governance after reviewing and analyzing papers on corporate governance and financial governance, and finds that the theoretic bases of financial dynamic governance originate from corporate property rights and contracts theory, corporate governance theory (especially residual governance theory), financial governance theory (financial-right-flow theory) and fair value accounting measurement theory. Then, the paper has a discussion on the theory of financial dynamic governance logically from positive transaction cost, incomplete contracts, property rights protection, property rights district order, corporate property rights improvement, human capital property rights improvement, residual property rights and residual corporate governance to financial dynamic governance. In addition, based on a review and evaluation on contents of financial rights, we divide financial rights into common financial rights and residual financial rights by the completeness degree of incomplete contract, and explain their implication, value direction and allocation. In our opinion, common financial rights are the parts of corporate financial rights clearly regulated and its results can be verified by the third part and residual financial rights are the parts of corporate financial rights in incomplete contract which are missed, not be regulated clearly or can't be regulated clearly or can be regulated clearly but can't verified by the third part. Common financial rights are fair value directed, but residual financial rights are in efficiency value direction. What's more, based on the equation"financial rights = common financial rights + residual financial rights", financial governance can be divided into financial statistic governance emphasizing corporate fair and financial dynamic governance emphasizing corporate efficiency, and it is a two value systems in essence embodying a balance of corporate fair and efficiency in practice. Financial governance inherits and transcends from traditional financial governance, with its concentrating district of residual property rights and residual corporate governance. Also, it is the core of corporate dynamic governance. Last but not least, the paper discuses the theoretic system of corporate dynamic governance. Under the direction of residual financial rights and common financial rights theory, we divide financial governance into the statistic parts and the dynamic parts, and it is a two value systems including financial statistic governance system emphasizing corporate fair and financial dynamic governance system emphasizing corporate efficiency. Financial dynamic governance system is composed of financial dynamic governance structure, dynamic governance mechanism and dynamic governance behavior regulation. Financial dynamic governance structure is mainly embodied as adjustment, betterment and dynamic improvement of financial capital structure, including the improvement in capital structure, stockholder's rights structure and editor's rights. Financial dynamic governance mechanism is mainly reflected in financial contingent governance. Financial dynamic governance behavior regulation is assembly reflected on the mechanism of concealed honesty.