Small And Medium Investors In Corporate Governance To Protect

Last year,many changes took place in China's security market, such as the discussing of the plan for cutting down state ownered shares, disputing of rebuiuld security market, strenthening of supervision. As the main part in security market, the protection for small investors is more intensely cared. Not only theory field, but supervision stratums recognise the importance of protection for investors, especially for small investors, which is an very urgent problem and becomes key problem of restraining the further development of security market.The protection for the small investors involves many factors, not only includes the improvement of social enviroment, but also includes perfecting of law and regulations, the enhancing of investors' quality, but the most important factor should be the perfecting of corperate governance mechanism. Then, from the corperate governance to study the protection of investors has theory and reality significance. It is not only the attention of system reform of state ownered company, but also the following for development of China's security market, so it is very good study item which links theory to practice very well.In the guiding part, according to the problem of small investors' protection and reserching backguound and the meaning of selecting title, I sort out the the research approach and thinking logic, in the same time, difinite relative concept, preparing for the spreading out of whole paper. In the first chapter, the theory of corperate governance is generally analysed. Then from the concept of corperate governace, I lookback the development of corperate governance theory and main corperate governance viewpoint in China and abroad, and sum up the concept of corperate governance. In the same time, the chapter analyses the main content of corperate governance such as principal-agent, inner person controK corperate governance structure, establishing the foundation for later analyse and model making. In order to use the good corperate governance, this chapter compares and analyses three kinds of corperate governance mode.In the second chapter, on the basis of corperate governance, I furtherly set forth the tactics and influence of relative equity parts when joining corperate governance. Because large shareholder has equity and resouce advantages, he can and is willing to join the corperate governance, and becomes the main part of governance, but in the same time, comparing the cost and return, large shareholder will seek the maximization of self interst, may use the governance mechanism to pass the decision of damaging the middle and small shareholders. Institutional investor is a market part who is developping and extending, with the expanding of it's scale, it wil become from shareholder negativism to institutional shareholder activism, however, between the institutional investors, another problem exists, that is , who is responsible for supervision, a cock game model which describes the supervision of institutional investors is used in this chapter to inspect the institutional investors' behaviour mode in the situation of supervisingcost and return is not symmetric. Because small shareholders have disadvantage position in corperate governance, they don't like to join corperate governance. By using a complete information static model of a small shareholder supervising large shareholder or inner person, I analysis the small shareholder's behaviour feature , from the utility function of small shareholder scattering of small shareholder and equity disttibuting degree etc, then discuss the supervising level which small shareholder is like to provide. At last, a smart pig game model is used to analyse the behaviour feature when small shareholder and middle shareholder join corperate governance and supervision, and obtaining a Nash equilibrium: corperate shareholder supervises and circulating small shareholder doesn't supervise.The reality of China's listed corperate governance and protection of small investors is inspected in the third chapter. Except analys...