Study On Corporate Governance Failures After External Financing Of Chinese Private Hi-tech Enterprises

External financing is an important means of achieving rapid development of private hi-tech enterprises. But it is often followed by a phenomenon of"corporate governance failures". That is: although in these enterprises the corporate governance system is built up in accordance with the relevant regulations, but in actual use it is often a mere formality, with the result of internal chaos and losing of the company's operating performance. It is very common in the process of private hi-tech enterprises'development. This paper conducted a study on this, aiming to provide useful reference to the improvement their governance structure.Based on an actual typical case, this paper first evaluates its status of corporate governance approach to the "corporate governance structure evaluation system", then analyzes causes of corporate governance failures of private hi-tech enterprises after external financing, and indicates that corporate governance failure is not a problem, but a system failure, which is embodied in three interrelated subsystems such as the basic operating system, the basic control system, the internal operating system. Among the three subsystems, the political system and cultural institutions constitute the basic operating system, professional managers, product, control market and intermediary institutions constitute the basic control system, the company's internal control mechanism constitutes the internal control system. Watching on the existing corporate governance failures, China's private hi-tech enterprises are facing many problems within and between the three subsystems.On the above basis, combining a successful case on corporate governance, this paper also discusses some strategies to improve corporate governance of private hi-tech enterprises after external financing, puts forward a perspective that such enterprises should put in force comprehensive treatment from a systematical view, aiming at problems arising from each subsystem, and in particular, emphasizes that: in a short term, we can only adjust the basic operating system and the internal control system, but in the long run, it is necessary to resolve the problem of the basic operating system failures. Accordingly, this paper gives a number of ideas to tackle corporate governance system failures of China's private hi-tech enterprises, including establishing a reasonable equity structure, strengthening the functions of the board of directors and independent directors, fostering sound markets of professional managers and corporate control, building a social credit system, and calling on the staff to play an active role in corporate governance etc.