The Optimization Of Financial Governance Based On Stakeholders

Financial governance, which is the combination of corporate finance and corporate governance, is the core of corporate governance. The efficiency of financial governance has great effect on the management state of the company. It becomes the focus of academic circles and the practical circles. However, at present, our company’s financial governance is still shareholder oriented unilateral governance. The controlling shareholder is in the dominant position of the company financial management, with the absolute control. Excessive concentration of shareholder power makes the interest of other stakeholders have been ignored. Natural conflicts exist between stakeholders, which require that financial governance power should be effectively allocated among stakeholders, in order to improve the effectiveness of financial governance, and realize the information symmetry and balance the interests among stakeholders.The thesis based on the review of related literature, begins with property right theory, financial right theory, principal-agent theory, and stakeholder theory. It elaborates the concepts, differences and relations of property rights, financial rights, financial governance right etc. It clarifies that financial governance rooted in agency problems, and considers that the requirement of stakeholders to share the financial governance right was based on the special assets investment. At the same time, it also puts forward the position and important function of the company’s CFO in modern financial governance structure.The thesis points out that the essence of financial governance is the allocation of financial right, the entity of financial governance includes shareholders, creditors, employees, suppliers, customers, community, government etc., the object of financial governance is financial right, and the target of financial governance is to maximize the interests of stakeholders. According to the elaboration of financial governance basic elements, the thesis analyses the existing problems of company financial governance in our country, and puts forward the optimization measures. Stakeholders are divided into internal and external stakeholders according to the relations between stakeholders and corporate. It elaborates various optimal allocation ways of financial governance right, and puts forward the path to realize the optimal allocation. In addition, the thesis refers to optimization function of the company’s CFO in stakeholder financial governance. Based on the reorientation of CFO’s role in financial governance, put forward the optimization function of CFO in the new role on stakeholder financial governance, using its power on financial strategy and financial monitoring, and points out the path to realize this function. Finally, we choose HouWang Company Co., Ltd to analyze financial governance of listed companies. The case reveals the drawbacks of shareholder oriented financial governance, and illustrates the necessity of financial governance based on stakeholders.