The relationship between financial governance and the significance of financial governance

1. Corporate governance is the premise and theoretical basis of financial governance, and the separation of enterprise ownership and management rights under the theory of corporate governance, as well as the resulting entrustment theory and information asymmetry theory are the theories of checks and balances between owners and operators, and between operators at different levels in terms of corporate property possession, use, disposal, surplus distribution and supervision and control, which are the premise and basis for the emergence of financial governance theory.

2 Financial governance relies on good corporate governance. The establishment of a company's financial governance system depends on the corporate governance environment, which forms a company-specific financial governance mechanism. The corporate financial governance environment, that is, the environment of corporate governance, is at the basic level of the company's financial governance system, which affects the distribution of financial rights of stakeholders, determines the division of financial rights, and thus establishes relevant financial institutions and supervisory institutions.

In short, without a good corporate governance mechanism, it is difficult for corporate financial governance to play a role.

3. Financial governance is an effective way to improve corporate governance. Corporate governance theory that the realization of residual claim and control is achieved through the change of the distribution of financial power among stakeholders, and different financial power allocation will produce different "incentive mechanisms" and "opportunity systems", and the efficiency of corporate governance completely depends on the efficiency of incentive mechanism and monitoring mechanism, so good financial governance is an effective means to improve corporate governance.

The meaning of corporate governance.

Corporate governance refers to the management and control of a company, that is, the internal control and management of an enterprise under the condition that the ownership and management rights of the enterprise are separated. Since the separation of ownership and management rights has given rise to many interest groups, including company shareholders and managers, these interest groups have a close relationship with each other, corporate governance needs to coordinate the relationship between these stakeholders, and form a stable state of checks and balances between the owners and operators of the enterprise to ensure the steady development of the enterprise.

The meaning of financial governance.

Financial governance is the management and control of the company's finances, that is, through the distribution of financial rights and control of the enterprise, the coordination of various relationships within the company, the establishment of a series of complete distribution control systems, and a complete set of institutional arrangements to solve the relationship between various stakeholders of the company. Financial governance is similar to financial management, but in reality financial governance is not the same as financial management. Financial management is a kind of management activity of a company in finance, focusing on management, while financial governance focuses on the management of power within the enterprise, similar to corporate governance.

The relationship between corporate governance and financial governance.

Corporate governance and financial governance are both inevitable products of enterprises in the process of adapting to economic development, and both are indispensable components of enterprise operation and development and are closely related. First of all, corporate governance is the premise of financial governance. Second, financial governance is the core of corporate governance.

Again, the goals of corporate governance and financial governance are the same. Of course, the main body of corporate governance and financial governance is also included, and they will give full play to their respective advantages in the process of corporate governance and financial governance, so that the value of the enterprise will continue to increase, so the two have the same goal.

It can be seen that corporate governance and financial governance are closely related in nature. Corporate governance is the most important structure in the modern enterprise system, and financial governance is the most important content of corporate governance, which is the realistic, concentrated and fundamental embodiment of corporate governance. The two are inextricably linked.

Therefore, it is very important for an enterprise to correctly handle the relationship between corporate governance and financial governance.

The financial governance structure is an important part of the corporate governance structure, and its content is basically the same as that of the corporate governance structure. It mainly includes the main body of governance and governance.

They differ in the following:1. Corporate governance is the foundation of financial governance, and financial governance is the core of corporate governance. Corporate governance clearly defines the responsibilities and rights of the various participants in the company, and clearly states the rules and procedures that should be followed in making decisions on the firm's firms.

The impact of corporate governance on enterprises is global and strategic.

2. The company's Zaomuqiao governance involves various stakeholders inside and outside the company, including shareholders, creditors, employees, consumers, investors, etc. Financial governance mainly involves the stakeholders within the company, i.e., investors, managers and supervisors.

3. Corporate governance is a relatively macro concept, involving the overall operation and development of the company. Financial governance is a relatively micro concept that deals with the specific financial activities and behaviors of a company.

1.It is conducive to a correct understanding of the complexity of financial governance.

Financial governance is a complex issue, which is the manifestation of a certain economic management system in the financial management of enterprises, which involves a considerable number of financial relations and affects the financial interests of stakeholders such as the state, investors, creditors, business managers and company employees. It is difficult to design a reasonable financial governance structure in a short period of time, so it is necessary to be cautious.

2.The financial governance body should include the country**.

In the distribution of financial rights within the company and the relationship between checks and balances, it is inevitable that the state will regulate the company's financial policies and financial behaviors, as is the case in China and foreign countries. Leaving aside the national research on financial governance, it is difficult to ensure that the financial governance structure is reasonable, which will bring adverse consequences in practice.

3.Research on the financial governance of Chinese companies.

It should not be divorced from the historical evolution of the financial management system of Chinese enterprises. The current financial governance structure of Chinese companies is a continuation of the financial management system of enterprises in the past. Following the historical trajectory of China's enterprise financial management system, learning from foreign experience to study financial governance issues may be more able to learn from people's strengths and speed up the rationalization and standardization of China's company's financial governance structure.

1.Multi-level financial governance body.

There is a multi-level entrustment relationship between the company's ultimate property ownership and the final property use and management right, so the main body of corporate financial governance is multi-level, that is, each level is the main body of financial governance at the next level. Generally speaking, the next-level governance body is subject to the higher-level governance body, the executor is subject to the principal or decision-maker, and the decision-maker is subject to the supervisor and the owner. In a state-owned company, the state can not only be the owner as the main body of governance, but also as a social manager as the main body of governance, and participate in the company's financial governance behavior.

2.A number of different specific financial governance objects.

Compared with multi-level financial governance entities, each financial governance entity faces one or a group of specific governance objects, that is, each governance entity is controlled and restricted within the scope of its financial supervision power, financial distribution power and financial decision-making power, which may be the operators of subsidiaries and their financial behaviors, or the financial revenue and expenditure activities of a functional department of the company, or the financial behaviors of other functional departments restricted by each entity at the same level.

3.Different governance tools and governance methods coexist in the financial governance structure.

Different levels of financial governance subjects and objects need to adopt different governance means and governance methods for different situations, such as contracts or contracts between owners and operators to stipulate their respective financial rights and obligations; Dismissal or resignation is used to compensate for the unreasonableness of the contract or the non-performance of one party; It is necessary to adopt the method of determining remuneration between different operators to fix the entrustment relationship between the two parties; Take measures such as deducting salaries or increasing rewards to motivate the best party to work hard. These different governance instruments and governance styles coexist in a financial governance structure.

4.Checks and balances are the basic state of financial governance.

Different from the traditional enterprise financial management system, the subject and object in financial governance, different entrusting parties and parties, owners and managers, in accordance with market rules to form a mutually constrained and mutually conditional relationship of checks and balances. In this kind of relationship of checks and balances, the relationship between the top and the middle and lower level managers, and between the ultimate owner and the owner of the property of the legal person, is not only manifested in the relationship of power control and obedience, but also in the mutual definition of their respective rights and obligations by relying on contracts.