A Research On The Financial Governance Of HY Company

Financial governance theory is newly developed with the emerging of corporate governance theory. It is an independent system involving a constant coordination of relations between principal and agent as well as economic interests, thereby promoting a mutual promotion of corporate governance and financial management. The theory is gradually formed in virtuous cycle. And it is increasingly important in promoting corporate governance and competitiveness with the development of modern economy.This thesis has selected HY Company as its research object. It starts with a clear definition of financial governance based on reference to existing studies on corporate governance theory and financial governance. The author has also made an in-depth investigation of HY Company's current financial situation to figure out its financial governance system. Combining with various research methods like literature review, theoretic analysis and field survey, this research has explored related financial governance problems which are detrimental to companies' operation from perspectives of financial governance structure, governance institution and governance behaviors. It is centered on allocation of finance rights and practical problems confronting small and medium enterprises. By doing this, the author is aimed at providing practical solutions for these enterprises' survival and development. The research has also come up with suggestions in regarding to companies' development strategy, business pattern. Proposals on promoting corporate financial governance have been advanced as well.This thesis believes that, for SMEs, financial governance should have different targets at different stages. And the financial right should be dynamically allocated. The single governance pattern is suggested to be changed in accordance with the maximization of stakeholders' interests and sustainable development. And it is a necessity to adopt dynamic financial governance in multi-layers with a centre of financial right allocation. Only by doing this, synergistic effect can be achieved, integrated financial governance system be constructed and corporate governance be optimized, finally improving the efficiency of financial governance.Based on the investigation of HY Company's financial governance, this thesis is aimed at improving its financial procedures and standardizes its corporate operation. It has also explored how to effectively improve financial governance for SEMs, suggestions made can be useful and referential in regards to solving SEMs' financial governance problems.