Study On The Way To Optimize Governance Structure Of Shandong TF Hydraulic Limited

Research on corporate governance is a research hotspot of scholars at home and abroad, empirical data shows that there is a positive correlation between corporate governance and corporate performance even corporate values, corporate governance mechanism is conducive to promoting the development of enterprises, increasing the income of residents, promoting social progress. Shandong TF hydraulic Limited (hereinafter referred to as "TF hydraulic") is a private enterprise, which was established in2000, with rapid expansion of the scale, achieved sales revenue185millions in2011.At the beginning of the establishment, the company with only ten people achieves a rapid growth. After ten years of development, the company has entered a new period of opportunity, but faces a series of new problems in the governance mechanism. Through the research of TF hydraulic mechanism of corporate governance, the paper provides advices to other private family business companies.TF hydraulic corporate has established Modern Corporation governance mechanism, the establishment of the general meeting of shareholders, the board of supervisors, the board of directors and professional committee, but both the board chairman and general manager is the same, with the problems of highly concentrated ownership structure. Comprehensive analysis shows that there are three problems of TF hydraulic in corporate governance, decision-making, supervision and incentive such as, excessive decision, insufficient supervision and lack of incentive system.To make a clear understanding of corporate governance decision-making, supervision and incentive problems, the paper aims at the root of the problem from the ownership structure, the independence of supervision and incentive plan design improvement. In order to improve the corporate governance mechanism, the paper takes TF hydraulic company as an example, through the current management of Introduction Company, analyzed the existing issues in corporate governance, summarized the influence factors of corporate governance, and how to improve the governance proposed specific measures. Because the traditional research mainly carries on the theoretical analysis, through the research of the specific enterprise, the paper helps to improve the application and value of the research.