A Study between Financial Governance and Value Creation In Case of Chinese Manufacture List Companies

摘要

In this paper, the relationship between financial governance and value creation is researched to explore whether the level of financial governance will affect the corporate value creation and announces the profound reasons which influence value creation. This paper argues that the companies experienced the damaged state of the value mainly because of the unsound financial governance. Reasonable financial governance structure and mechanism will effectively reduce adverse selection and moral hazard arising from agency problems, improve resource allocation efficiency of the enterprises, and improve value creation capabilities of the corporations.