Corporate Governance, Financing Structure and Investor Protection-Case Study on the Battle for Controlling Gome

摘要

Corporate governance and financing structure play an important role in investor protection. Scientific and sound corporate governance mechanism is the premise to protect the interests of the investors, and reasonable financing structure is an effective means. But corporate governance deficiencies may induce the managers to violate the interests of investors by various means, including changing financing structure. This paper first elaborates the intrinsic relationship among corporate governance, financing structure and investor protection in theory, and then through the case of the battle for controlling Gome, the paper analyzes the deep reasons of corporate governance deficiencies in Gome, which lead the managers to dilute controlling shareholder's equity through financing structure and thus violate investors' interests. Based on the above analyses, the paper puts forward policy suggestions to improve the corporate governance structure, make scientific financing strategy and protect interests of investors.