Stakeholder-based Study On The Financial Governance Evaluation Of Yueyang Forest And Paper Co.Ltd.

Since the 13 th Five-Year Plan to Promote Paper-making Industry was issued in June,2017,new goals have been set for paper-making industry in terms of total scale,pulp structure,products and enterprise structure,technical equipment and the reduction of pollutant emission reduction.In order to achieve the new goal,financial co-governance predominated by stakeholders requires the corporate financial governance to be connected with the stakeholders who are closely related to corporate development,so that they can be thoroughly informed of the corporate financial governance,and then put the agenda.Not only are the shareholders' benefits maximized,it is also helpful for managers to make better strategic choices,guarantee the capital safety for creditors,safeguard the vital interests of employees,and ensure the cooperation between upstream and downstream enterprises.What's more,It also makes a certain contribution to the on-time tax payments and consequently to the development of society.Therefore,it is of great practical significance to evaluate the stakeholder-based financial governance.Taking the stakeholder-based financial governance of Yueyang Forest and Paper company as the research object,this paper mainly :(1)summarized the theories related to stakeholders and financial governance.(2)constructed an evaluation system for stakeholder-based financial indicators through analyzing the implementation of the stakeholder-based financial governance in Yueyang Forest and Paper Company,and worked out the evaluation results of the financial governance in Yueyang Forest and Paper Company by using entropy method and gray correlation coefficient method.With the evaluation results analyzed,it is revealed that there are several problems in corporate financial governance.For instance,minority shareholders has lost the right of control;creditors are rarely involved;employees stay at a inferior position in financial governance;customers and suppliers fail to take part in governance;and the disclosure of social responsibility information calls for completion.(3)having analyzed the issues mentioned above and been acquainted with the requirements of every stakeholder,put forward some suggestions for the improvement in five aspects: enhance the participation of minority shareholders in financial governance,extend the financial supervision authority of creditors,optimize the financial governance effect of customers and suppliers,lift the employees' position and function in financial management,complete the corporate social responsibility information disclosure,so as to achieve the further optimization of corporate financial governance.Through the above research,the paper draws the following conclusions: Corporate financial governance should not only consider the maximization of shareholders,but also consider the maximization of the interests of financial stakeholders of various stakeholders.Applying stakeholder financial governance to Yue Yang forest paper Group.effectively solves the problem of financial governance under shareholder governance,with a view to providing reference and theoretical support for enterprises to improve financial performance and achieve sustainable development.With the above-mentioned research work,this paper reached its conclusions as follows: not only shareholders' benefits,but also every stakeholder's benefits should be considered to be maximized in corporate financial governance.Applied to the financial governance in Yueyang Forest and Paper Co.Ltd.,stakeholder-based financial governance was proved to be an efficient solution to the financial governance problems raised under the governance of shareholders,which is expected to be employed as a reference or theoretic support for improving corporate financial performance and realizing sustainable development.