Analysis Of The Obstacles To Chinese Corporate Governance Finance Essay - Free Essay Example

Sample details Pages: 7 Words: 2116 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Question ¼Ãƒâ€¦Ã‚ ¡What obstacles face the further improvement of corporate governance practices in Chinas large companies? Introduction With the popularity of the globalisation and increase of international transaction, China is trying its best to adopt the trend of this development. Since the economic reform in 19**, China has changed its model of company governance step by step, all with the purpose of raising the standard of Chinese peoples living. The reform of Chinas socialist market economy stimulates the transform from state-owned enterprises to corporatise to shareholding companies. Chinas efforts to re-establish a market-oriented economy mainly expresses in the aspects of the transform of the ownership of companies, rule-based approach to its securities market and laws and regulations of corporate governance. (CL 1) Corporate Governance is commonly viewed as a system that delineates the rights and responsibilities of each major group of s takeholders in company, and sets rules and procedures for making decisions about company affairs (OECD, 1998). Overall, Chinese definition of corporate governance is described in 1999, as the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined (OECD 1999, P2) Although with these great progress in the reform of the economic system and the structure of corporate governance of China, these are still some problems hinder the economic development. As accepted, the most effective solution for adopting the modern economic development is improving the structure of corporate governance to suite the new re-established market-oriented economy. (CL 1) This essay aims at assessing the obstacles existing in the further improvement of corporate governance practices. In order to analyze this convincingly, at first this essay gives a general background knowledge about the present structure of co rporate governance in China. In this section it introduces the modern characteristics and governance model. It then assesses the obvious and crucial problems in China which hinder the development of further improvement of corporate governance practices. It mainly talks about the issues in eight aspects:ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ÃƒÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ÃƒÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦.. Finally, this paper gives out some prevalent perspective of how to conquer the barrier holding in the modern society, with relevant to the current form of economic development. Background knowledge about the CG A good model of CG should provide proper motivation for the board and management to pursue their goals that are in the profits of the corporate and shareholders, furthermore, stimulating effective supervising, with the result that encouraging firms to use resources more efficiently. (OECD 1999, P2) Principles and Modern model The main principle existing behind co rporate governance is that companies ought not to only aim on its own profits; they also ought to share their interests with their investors as well. That means all the stakeholders should have the right to be allocated with the interests. (http) On the base of this element principle, some specific standards and regulations are still needed in the firms. (http) With the main principle described above, it could be concluded that the corporate governance could be understood in two terms: a structure to direct a company and a method to coordinate the interests of managers and shareholders and reduce the costs. (TRACK 4) Generally in the international world, there are mainly two models of corporate governance in practice. One is shareholder value model and the other one is the codetermination model. The former one, also called a market-oriented model, has the main characteristic that selling shares directly to decentralized distribution of shares, with an active market for hostile takeovers. (T 5) Its main purpose is to increase the value of corporate for the benefits of shareholders. The latter one, with few hostile takeovers, prefers a network-oriented approach. It takes the measures of improving loyalty and motivation of employees, which has a name of participation theory. The main difference between the two models is that the former one takes its measure of cost advantage and radical innovation to direct firms to win in competition, whereby the latter one aims on the method of improving quality and innovation. (T 5) A Chinese corporate governance system Chinese corporate governance system has combination characteristics of the two models. However the most significant feature of it is that state plays a controlling role in the method of direct or indirect ownership to manipulate the company. It is usually expressed in the form of private shareholders or stakeholders and creditors to control the enterprise. China has the three main models of corpo rate governance structures. (Chen and Strange, 2004) (T 11) The first model is the most common one. Its non-tradable shares are hold by solely state-owned institutional investors and other institutional investors at the same time. They take this method to apply their indirect control of the firm. (T 11) However, in the second model, the state masters the enterprises directly through the way of holding controlling voting shares. In other words, the governmental departments have direct ownership of non-tradable shares. (T 11) According to the third model, it is a characteristic of an assemblage of various other shareholders, which contain private shareholders, enterprises with foreign investors and Collectively Owned Enterprises (COEs). (T 11) The Current corporate governance practices in China Current Legal Framework Maximizing the shareholder value and productivity of companies are the main purpose of corporate governance. Since in 1992 the first China Securities Regulat ory Commission (CSRC) was established, more and more laws, regulations and directives (more than 300) relating to securities and futures market have been promulgated to maintain the economic order. (USC 2) The Chinese legal framework for corporate governance contains the laws of Company Law, the Securities Law and the Code of Corporate Governance for Listed Companies. (USC 2) It is in 1993 that the first legislative force, the Company Law, come into force. After that, the Company Law was revised in 2005, and then came into force in 2006, with the goal of expanding the legislation. (Directing 2) The Securities Law as well as the Company Law affects the structure of corporate governance in its own way. (D 2) The Code of Corporate Governance by CSRC sets out the most important assessment standard of evaluating whether it is good corporate governance inside a listed enterprise, with the aim to have a more efficiently running economic market. (D 2) Recent development Rights of shar eholders and rules for shareholders meeting Since China has established its Securities Regulatory Commission in 1992, it has made essential and abundant progress of corporate governance in many areas. Among all, the significant one is the adjustment of the rights of shareholders and rules for shareholders meeting. It stipulates in Chapter 1 of the Code of Corporate Governance that all shareholders enjoy equal rights and burden the equivalent responsibilities based on the shares they hold. Furthermore, they have the right to prevent their right from encroaching by the way of applying for law. As the rules for shareholders meetings, there are stated two forms of meeting: general one and interim one. It also has been described in the Code that Every shareholder has the right to attend the meetings in person at present, however if he would like, he could assign a representative on their behalf. Both patterns should have the same legal effect, as stated in the Code. (USC 3) regulat ion about the directors and board of directors The progresses also are expressed in the aspects of establishing the relevant regulation about the directors and board of directors. As Chapter 3 of the Code states, it stipulates the issues about directors and board of directors in six areas. It contains election procedures, duties and responsibilities, composition of the board, rules, independent directors and specialized committees. (USC 4) According to Chapter 5, for encouraging the employees more effectively, it states some rules about performance assessments and incentive and disciplinary systems. It talks about the issue with the main principle of fair and transparent standards objecting to the directors, supervisors and management personnel. (USC 5) Fiduciary Duties Another impressive expression of the progress is about the aspect of fiduciary duties. The Company Law requires protecting the companys interests by the directors, supervisors and managers in the way of appl ying their official duties. In other words, they are not allowed to exploit their positions and power within the enterprise. (USC 4) Whats more, it also forbids its employees from engaging personally work, which is the same with the one he operates in the company, in relevant business. (USC 4) On the other hand, the Securities Law has some regulations about insider information and related party transactions. As Doe and Chan concluded in 2001, persons, who hold the insider information relating to securities trading, are forbidden to use the relevant information to do the securities trading activities. (USC 6) Information Disclosure and Transparency Last but not least, the part about information disclosure and transparency is an attracting progress as well. It is the CSRC that established the basic framework for information disclosure in Chinas securities markets. As Liu and Zhang described in 1996, the frame could be separated into four levels, which involves securities trading legislation, implementing securities legislation, content, form, and criterion of it and the interpretation and explanation of the specific provisions. (USC 5) Whats more, for matching this aim of information disclosure, the Securities Law has some regulations about the right of auditors. It states that auditors have the right to review the companys financial statements and records and to request relevant information for the purpose of guarantee the effectively running of the company. (USC 7) The obstacles Highly concentrated Ownership Structure States over control Government assigning persons (Insider control of corporate affair) Weak protection of the Shareholders right Issues about directors and board of directors Executive of the directors Independent directors and committees Assessment and incentive system Weak Supervisory Board Insider Trading and control Insider information trading Collusions in Market manipulations Horizontal compet ition Information Disclosure The part of information disclosure is such important with so many reasons. Firstly, it is necessary for the government and public to get the knowledge about the governance of the company to set a practical policy and supervise their deed in the modern world. (ÃÆ' ¤Ãƒâ€šÃ‚ ¸Ãƒâ€šÃ‚ ­ÃƒÆ' ¦-à ¢Ã¢â€š ¬Ã‚ ¡2) Secondly ¼Ãƒâ€¦Ã¢â‚¬â„¢the public could get more information about the company through the information disclosure companies provided. This could improve the trust to the company from the public and help the company establish a good corporate image. Furthermore, a good policy of information disclosure will provide a general management strategy and profit running of the company to a potential investor, therefore, it could help the company to get a low-cost financing, which of course improve its competitiveness. (ÃÆ' ¤Ãƒâ€šÃ‚ ¸Ãƒâ€šÃ‚ ­ÃƒÆ' ¦-à ¢Ã¢â€š ¬Ã‚ ¡ 2) (ÃÆ' ¦Ãƒ ¢Ã¢â€š ¬Ã‚ Ãƒâ€šÃ‚ ¹ÃƒÆ' ¥Ãƒ ¢Ã¢â€š ¬Ã‚  Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢) ¼Ãƒâ€¦Ã‚ ¡ In the modern corporate governance system, the main obstacles that exist in the part of information disclosure are lack of timeliness, lack of integrity and falsification of financial data. In many cases, the most typical expression of the drawbacks is without providing information timely and accurate. As widely accepted, timeliness is vital dimension of the effects of information disclosure. Only the timely and accurate information could provide the value knowledge to the public and relevant parties. But in the current society of China, it rarely provides the useful information timely. Further speaking, the present information disclosure policy in China is far from sufficiency. On the one hand, despite the mandatory disclosure of company information is designed according to laws, regulations and industry standards, companies rarely adopt the requirement. On the other hand, the autonomic requirements of disclosure that from ethics and values are always be en ignored. Furthermore, the information that most enterprises disclosed is far to satisfy the relevant party to get the whole running situation of the enterprises. Another obstacle is that although Chinese laws on corporate governance follow international standards in general in its documents, mandatory disclosure of company information does not lead to a greater transparency. Because no one could guarantee the information provided is with truthfulness and accuracy. One of the persuadable evidences is that as reported in China Reform Daily 2001, approximately 98.7% of Chinese companies falsified their earnings in annual reports for the past accounting year. Solution Suggestion: China should draw lessons from many existing examples, such as the major directing rules of CSRC 2002, the major Sarbanes-Oxley Act (2002) rules and the NYSE (2003) requirements. The first one gives the rules that regulating an ongoing responsibility of listed companies and recommend the secretary o f the board of directors shall be in charge of information disclosure. The Sarbanes-Oxley Act states that each annual and quarterly financial reportÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦shall disclose all material off-balance sheet transactions and directors, officers and owners of 10% or more must report designated transactions by the end of the second business day following the day which the transaction was executed. As well as the NYSE requires each listed enterprises to adopt and disclose corporate governance guidelines, and to adopt and disclose a code of business conduct and ethics for directors, officers, and employees, and to promptly disclose any waivers of the code for directors or executive officers at the same time. Conclusion Don’t waste time! Our writers will create an original "Analysis Of The Obstacles To Chinese Corporate Governance Finance Essay" essay for you Create order

Fraud as a Negative Catalyst in the Nigerian Banking Industry

Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 2 (5): 357-363  © Scholarlink Research Institute Journals, 2011 (ISSN: 2141-7024) jetems.scholarlinkresearch.org Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 2(5):357-363 (ISSN:2141-7024) Fraud as a Negative Catalyst in the Nigerian Banking Industry Akindele R.I Department of Management and accounting Obafemi Awolowo University, Ile Ife, Nigeria ___________________________________________________________________________ Abstract Fraud in the Nigerian Banking Industry before the recent merger and acquisition and recapitalisation efforts was at alarming rate. It has caused many banks to collapse, and many investors and depositors funds†¦show more content†¦management staff are in secret leagues with the enemy†. He says that only the measured alertness and The focus of the study is to identify and assess the collaboration of genuine banks together with causes, consequences, detection, prevention and improved supervisory measures from CBN ad NDIC control of fraud in the Nigeria Banking Industry. will terminate such pirate organizations. As it were frauds seem to have increased as new technology is LITERATURE REVIEW AND THEORETICAL born and more advanced techniques of enhancing FRAME WORK business transactions have been developed. Young, (2002) says that, ample evidence exists that Fraudsters are constantly devising new plans, individual integrity of those running the banks today 357 Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 2(5):357-363 (ISSN:2141-7024) has never been at a higher level. Never before have we seen attention to the actual steps; procedures and control of monetary transactions. Employees’ as well as firms in all industries engage in fraudulent practices all over one world. Although the existence of fraud in our banks is not an uncommon or unexpected behaviour, the prevalence ‘of it is what is worrying because of all the various problems confronting the mostShow MoreRelatedTHE ROLE OF COMMERCIAL BANKS IN THE ECONOMIC DEVELOPMENT OF RURAL AREAS OF NIGERIA4862 Words   |  20 Pagesneeded for its real sector investments and industrial growth. Keyword: deposit liability; credit; capital formation. Introduction The Nigerian banking industry is majorly composed of Deposit money banks, development banks and the Central Bank of Nigeria (CBN), which is the apex bank. The apex bank exercises supervisory and regulatory authority over the banking industry. The Central Bank of Nigeria was established by the Central Bank of Nigeria Ordinance 1958 following the report of J. B. Loynes. TheRead MoreThe Accounting Profession and Nat39077 Words   |  157 PagesTHE JOURNAL OF ACCOUNTING ANAN Volume 1, No 1, March 2009 Published by: Nigerian College of Accountancy, Jos Postgraduate Professional College and Training Arm of ANAN ...Advancing the Science of Accountancy EDITORIAL BOARD Prof. Edet Robinson Iwok, Ph.D, FCNA Prof. A. A. Okwoli, Ph.D, FCNA Prof. Abimaje Akpa, Ph.D, FCNA Prof. B. C. Osisioma, Ph.D, FCNA Prof. Edet B. Akpakpan, Ph.D, FCNA, Prof. A. C. Ezejulue, Ph.D, FCNA Prof. A. S. Mikailu, Ph.D, FNIA Chairman, Education, TrainingRead MoreAn Assessment of the Impact of Corporate Social Responsibility on Nigerian Society: the Examples of Banking and Communication Industries18990 Words   |  76 PagesJournals Full Length Research Paper An assessment of the impact of corporate social responsibility on Nigerian society: The examples of banking and communication industries Adeyanju, Olanrewaju David Department of Financial Studies Redeemer’s University, km 46, Lagos Ibadan Expressway Mowe, Ogun State E-mail: davfol@yahoo.com, Tel No.: 07037794073 Accepted 30 January, 2012 In the Nigerian society, Corporate Social Responsibilities [CSR] has been a highly cotemporary and contextual issue toRead MoreThe Role of Ict in Banking Operations13419 Words   |  54 PagesTHE ROLE OF ICT IN BANKING OPERATIONS CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The Nigerian banking system has undergone remarkable changes over the years, in terms of the number of institutions, ownership structure, as well as depth and breadth of operations. These changes have been influenced largely by challenges posed by deregulation of the financial sector, globalization of operations, technological innovations and adoption of supervisory and prudential requirements that conformRead MoreCross Cultural Management Research6745 Words   |  27 Pagesrefreshed and promoted within the Xerox population†(Xerox et al, 2009). CEO Anne Mulcahy takes ethical violations seriously and when investigations are conducted they are carefully conducted. The accomplishment Xerox have faced are limited financial fraud reporting, weeding out managers who try to take advantage of their position and power, and protecting employees from feeling harassed. â€Å"One instance that really stands out in my mind (Hector Motroni) is an employee of an external agency who calledRead MoreDeveloping Management Skills404131 Words   |  1617 Pagesorganizations— is the key determinant of organizational success. These studies have been conducted across numerous industry sectors, international settings, and organization types. The research findings now make it almost unquestionable that if organizations want to succeed, they must have competent, skillful managers. For example, in one study of 968 firms, representing all major industries in the United States, organizations whose managers effectively managed their peopleâ€⠀that is, they implemented effective

Heart

Heart-warming story Essay When writing this play, Russell quoted, The story sounds asif it is a Greek myth but there is no existing story, as far as I know, about twins secretly parted who end up killed on the day they learn the truth about themselves. It feels asif it is a story that has always existed and that is what I wanted to create. This generally explains what Russell wanted his audience to understand; in order to do this, he finds various ways to keep them interested yet hanging on and wanting more within the scenes that follow. He puts many comical and loving scenes in Blood Brothers, also scenes, or incidents, of love and misfortune. Throughout the play, the audience is constantly guessing. There are endless clues as to what happens in the following scenes. One of which is, in the scene where the children are playing, Linda is seen covering mickey so he doesnt get upset. If I were to place the characters in specific positions on the stage, Mickey and Linda would be separate, from the gang, and at the front of the stage, whereas the rest of the children would be in a huddle and more towards the middle and the back of the stage. This would illustrate that Mickey and Linda have an obvious connection, which gives us an idea that there is an intimate occurrence between the two of them, later on in life. This scene also shows the characters playing with toy guns. This could be seen as a bit of an insight, of what is going to happen in the future. When the characters are just young children, they have toy guns and are shooting at each other whilst acting out Cowboys and Indians. Again, this part of the play is showing that it is something that is just for fun, showing that there is nothing serious going on. Some people may look at Blood Brothers as a superstitious play, as when the characters grow in age, they become more and more interested in guns. As a result of this, someone is killed. Some believe this is due to children having guns when they are young and continue to use them, as they get older. Others, however, believe it has nothing to do with that, that it is just by chance that a person may happen to like guns when they are older. Also, some believe it is the background from which the person has come from. When referring to the play, we may be persuaded to believe this last point, and the fact that if you come from a working class background, you are more likely to get yourself into trouble. Although, we may be persuaded that if you have a toy gun from a young age, you are moving on to using bigger, better more realistic guns as you become older. Willy Russell quoted,  I am just not convinced that banning toy guns will do anything towards curbing the aggression in children  This shows that Russell believes that having a toy gun as a child will not affect our later lives. I think he has portrayed this very well in his play, as he hasnt used what he believes, he has left it open to the audience and has let them think of it what they wish.  When Mickey and Linda go to get Edward from his house, we see class division. I would, again, place Mickey and Linda together, yet centre stage and Edward would be seen through an upstairs window. This portrays the class division and shows us that Edwards status level is a lot higher than Mickey and Lindas. Also, complete opposition is shown. .u670808b66d08353cdb8378c03b9caa91 , .u670808b66d08353cdb8378c03b9caa91 .postImageUrl , .u670808b66d08353cdb8378c03b9caa91 .centered-text-area { min-height: 80px; position: relative; } .u670808b66d08353cdb8378c03b9caa91 , .u670808b66d08353cdb8378c03b9caa91:hover , .u670808b66d08353cdb8378c03b9caa91:visited , .u670808b66d08353cdb8378c03b9caa91:active { border:0!important; } .u670808b66d08353cdb8378c03b9caa91 .clearfix:after { content: ""; display: table; clear: both; } .u670808b66d08353cdb8378c03b9caa91 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u670808b66d08353cdb8378c03b9caa91:active , .u670808b66d08353cdb8378c03b9caa91:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u670808b66d08353cdb8378c03b9caa91 .centered-text-area { width: 100%; position: relative ; } .u670808b66d08353cdb8378c03b9caa91 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u670808b66d08353cdb8378c03b9caa91 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u670808b66d08353cdb8378c03b9caa91 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u670808b66d08353cdb8378c03b9caa91:hover .ctaButton { background-color: #34495E!important; } .u670808b66d08353cdb8378c03b9caa91 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u670808b66d08353cdb8378c03b9caa91 .u670808b66d08353cdb8378c03b9caa91-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u670808b66d08353cdb8378c03b9caa91:after { content: ""; display: block; clear: both; } READ: February 16, 2001 Bartleby, in Herman Melville's short story Bartleby the Scrivener is a character who lives his life in utter isolation EssayDuring the song that occurs before the fun, play scene, the Narrator is singing and hinting to us that something is going to happen, in the long run, and it isnt going to be good. To create tension, I would position the Narrator behind a brown, wooden table, which would be centre stage. He would be pacing up and down the stage to create the effect that he can see you no matter where you are. The lighting would be dark and eerie, with one constant spotlight; following the Narrator to show he is important and superior. The backdrop wou ld consist of a bridge and the City of Liverpool, showing the audience exactly where the play is set. My Narrator would be in a shirt and bow tie with a long, black, cloak-like coat, to resemble and evil devil, with jet-black trousers, and smart black shoes. He would look smart and nicely finished. When the atmosphere and dialogue is a lot calmer, the bow tie would hang loose and undone and the jacket would be situated on his arm or flung over his shoulder, to create a fun, more lively feel. He would be stood on certain stage blacks to show his different status levels throughout various scenes in the play. This particular play can be seen and read in many different ways. People may refer it to superstition, luck and misfortune or to the fact that if you have ever done something wrong in your life, you will suffer the consequences. There are so many ways to look at this play, but I see it as a very meaningful, heart-warming story. From the way in which the characters are placed, the class divisions are shown, a love story is seen, violence is portrayed and also how divisions and discrimination can effect our lives. From the very beginning, to the very end!