Research On Stakeholder's Financial Governance

With the development of the theory of Corporate Finance and Corporate Governance , researches about problems on finance and governance separately can't fulfill the needs of subject development and economic practice. This thesis is based on the research about financial theory and utilizes the method that first analyzes general theory and then brings forward cases in practice. The basic theories of this thesis conclude the principal-agency theory, the financial rights theory, the stakeholder theory and financial governance theory and so on. It impenetrate the stakeholder logic into financial governance research, beginning from the connotation of financial governance, discussing the definition of many related basic theory and putting forward a system of financial governance of stakeholder which consists of the structure and mechanism of stockholder's financial governance.This thesis makes an appliance of stakeholder logic into the research of financial governance , interconnecting stakeholder research and financial governance closely, making the object of financial governance be in line with that of corporate finance. Based on it, this thesis defines the connotation of financial governance further, differentiates it from financial governance structure and suggests that financial governance is a dynamic but not a motionless process. The purpose of the discussion on stakeholders'financial governance is not to look for a uniform financial governance mode, but to allow multiform financial governance mode to exist together. So, stakeholder financial governance is a dynamic process whose entity includes the shareholders, the operators, the stuff, the creditors, the customers, the suppliers and the government, whose object is financial rights. The stakeholder financial governance system is a concentration of financial governance structure and financial governance mechanism. The financial governance structure includes internal governance structure and external governance structure. Each stakeholder is allocated reasonable financial rights, both collective governance rights and contingent governance rights. Financial governance mechanism includes incentive mechanism and constraint mechanism. When designing incentive mechanism, combination must be well done between physical and psychological incentives, individual and organizational incentives, short-term and long-term incentives. Building relevant constraint mechanism can appropriately decrease manager's "lazy" and opportunism behavior. The exterior constraint mechanism includes the function of the supervisor meeting , while the inner constraint mechanism incarnate three aspects such as the product market, the capital market and the agent market. At last, the thesis launches a research on a related case and analyzes the problem generated from the financial governance application in corporate. It tells us the rationality and necessity of stakeholder financial governance and expects that the analysis will have certain reference value to the reform of the corporate governance and finance.