Enterprise Ownership,Corporate Governance and the Protection of Creditors' Interests

The creditors' interests are often infringed by the insider with enterprise's ownership in common condition.But this problem can be mitigated by the financial contracts when the creditors can get the full and reliable information about financial position of the enterprise.So,the objective that creditors take part in the corporation governance is to reduce the information asymmetry between the insider and the creditors.When the enterprise value is less than debt value or the debt contracts can not be performed,the creditors should protect their interests through adopting all kinds of measures.