Research On SMEs Financial Governance

Since the reform and opening-up, Chinese economy maintain above 8% average annual growth rate continuously, SMEs is the very important force which create the miracle. SMEs is the important basis of our country's national economy coordinated and healthy development, they are the constant source of state revenue,especially the local financial revenue, they are the the Micro-basis of establishing the socialist market economic system, they are the important guarantee of social stability. Especially the current, SMEs play an important role in ensuring the national economy appropriate growth, creating employment, innovating, increasing export value, activing the marketing economy etc. At present, SMEs'the rate of operating failure is high, the academia proceeds deep-seated and multi-angle discussion and analysis. From the financial respect, it main focuses on researching the external environment and specific financial management activities formed by the SMEs financial distress. Because of the historical development, few involve SMEs financial governance. Why so many SMEs delope well at the initial stage, and a large number have been eliminated at the later stage? We consider that there are many reasons of the phenomenon, but the unreasonable financial management structure is a important factor which restricted the SMEs sustainable development. On the basis of absorbing the essence of financial scholars research on financial management , in accordance with the problems of SMEs financial management at present, this paper applied the property rights theory, property theory and financial hierarchical theory, enterprise contract theory and principal-agent theory, stakeholder theory etc. At first, it defines the financial management target, entity and object, mechanism etc, based on the heoretical basis, based on corporate life cycle theory, from the aspect of financial management objectives, financial governance structure, configuration of financial management right, the external oversight mechanisms, financial incentive and restriction mechanism, the degree of stakeholders participate in management, make a detailed comparison of SMEs'and large enterprises'financial management status quo. In view of the status quo of SMEs'financial management, put forward to the measures of improving SMEs'financial management. Through this paper's research, put forward to some countermeasures of solving the current problem of our country's SMEs financial management systemly, in order to improving the efficiency of financial management. Significance of the research is not only confined to SMEs'financial management level, but also concern SMEs'long-term healthy development and our country's economic sustained growth in the future.