The Research Of Financial Governance Of Stakeholders In China's Listed Companies Which Based On Game Theory

Financial governance is the most important part of financial management, and nowthere are many problems in listed companies' financial governance in China. This studydemonstrates that we must consider the financial rights of stakeholders in listedcompanies' financial governance in China, and designs the program of financialgovernance which based on stakeholders. For the characteristics of the study, the paperuses research methods of browsing materials, studying cases and combining ofquantitative and qualitative.First of all, the study defines the concept of financial governance and shows thebackground and significance, then compares Chinese and foreign scholars' basic theory,structure and mode of financial governance, points out the advantages and problems.Secondly, the paper studies on the four main financial relations in the company:shareholders and creditors, shareholders and managers, major shareholders and othershareholders, board of supervisors and the insiders. Simultaneously, it establishes therelevant assumptions, sets up the model of game theory, finds the equilibrium solution,and finds the main factors which affect financial governance of stakeholders in listedcompanies, then once again demonstrates that we must consider the financial rights ofstakeholders in listed companies' financial governance. At the same time, it points out theproblems such as imperfect incentive and restraint mechanisms, internal control, financialrights of creditors can not be guaranteed etc.Thirdly, combined the program of stakeholders' financial governance with gametheory, this study proposes solutions such as strengthening the surveillance of creditors,diversifying equity etc.Finally, according to the annual financial statements of2010in Hebei Province, thestudy finds out the problems of listed companies' financial governance such as excessiveconcentration of equity, serious internal control etc. Then combined the results of gameanalysis, it proposes effective solutions such as splitting share structure, preventinginternal control etc.