Study Of Multinational Governance Issues

Corporate governance is a set of system arrangements aboutcorporate trade, including the outer governance and the inter governance.Its aim is to ensure the efficiency of corporate decision and the stable andcontinuous development of corporate, by appropriately arranging theresidual right and controlling right.The essential of global corporate governance includes thegovernance of both parent company and the subsidiary. In order to makethe global corporate governance effective, the multinational companies(MNC) should establish a systematic governance structure and completegovernance mechanism.In this paper, there are five chapters:The first chapter is introduction. It introduces the source and themeanings of this topic and makes a review of the relative theories and thepractices as well.The second chapter illustrates the system arrangements of MNC.The property right of the global companies is formulated after the singlecorporate stage and group stage. The structure and the running ways of theproperty right are influenced by several factors.The third chapter disserts the principal-agency problem. As thereare more levels between the initial principals and the agencies, the agencycosts and the risk of the global companies is much higher.The forth chapter introduce the governance mechanism ofsubsidiary companies in the foreign countries. This mechanism includesthe outer and the inter governance mechanism.The fifth chapter analyzes the governance problems of thoseglobal companies who run their business in China. Based on the researchof three forms of companies in China, we discuss how to help the Chinesemother companies to build up an effective corporate structure andmechanism.The last chapter takes China Aviation Oil(Singapore)CorporationLtd. as the example to analyze the corporate governance problems exitingin our oversea subsidiaries of our state-owned companies. By comparingthe corporate structure before and after the reorganization, I dug out theexisting problems and put forward some improvement measures.