Financial Governance Research On Listed Companies Of Electric Power Industry In China

As a state-owned monopoly industries, the power industry of listed companies under the market mechanism is still not out of state control, long relied on state subsidies, resulting in the industry less competitive, low financial governance efficiency. In the presence of major financial governance following questions: ownership structure is irrational, dominance, lack of diverse checks and balances, the interests of minority shareholders and creditors is difficult to guaranteed; the main financing is bank loan, as banks and companies are state-owned assets, property rights belong to the same subject, the debt constraint is weak; incentives single, long-term incentive inadequate, resulting in lack of job management initiative and creativity and so on. According to the above research background, in this paper, the electric power industry in our country research on financial governance of listed companies, to seek countermeasures and suggestions to solve the problem of financial governance.Electric power industry is the foundation industry and the necessity of relational international livelihood of the people, therefore, the research of the power industry financial governance efficiency is of great significance to improve the quality of service of electric power industry. Chapter I, introduction, discusses the theoretical basis of the relevant domestic and international financial governance, in the context of the study, summarized the characteristics and the financial situation of power industry.Chapter II, Chapter III and Chapter IV, respectively, financial governance structure, financial governance and financial governance norms were analyzed by studing the relevant literature on domestic and international financial governance, summarized the current problems from the above three aspects. Chapter V, the empirical analysis, extracted the main indicators which affect financial management from the above three aspects, such as: asset-liability ratio, balance than, executive compensation, and the first big shareholder’s stake. According to the above extraction index build DEA model to empirical studies on financial governance of listed companies in electric power industry, to find the main factors influencing the financial governance. Because this paper mainly discusses the state-owned company, so, choose the listed state-owned absolute control in our country and the strong relative holding 30 electric power company for analysis and evaluation. After the DEA method of evaluation, the following conclusions: the first big shareholder’s stake and asset-liability ratio and institutional ownership in the financial governance structure, executive compensation factor in financial governance mechanism, are the main factors influencing the financial management, other factors are not has no effect on financial management, just influence degree is inferior to the four factors. Finally, this article on the basis of the financial management present situation and the empirical analysis, the state power of the company’s financial management suggestions and countermeasures are put forward.