Study On The Impact Of Corporate Governance On Financial Performance Of ST Jinggu Co.,Ltd.

With the continuous development of modern corporate system,Many scholars has paid attention to corporate governance.Practice has proved that good corporate governance can reduce the operating costs of enterprises,improve the value of enterprises.Therefore,it is necessary to explore the mechanism of corporate governance on financial performance and the correlation between them.First of all,this article chooses ST Jinggu as the research object.On this basis,this paper analyzes the situation of corporate governance of ST jinggu.It is found that there are many problems in the corporate governance,such as the separation of cash flow rights and control rights,the mismatch of the board seats and the share proportion,the imperfect executive incentive system,the lack of independence and professionalism of the board of supervisors.Secondly,this paper analyzes the changes of the financial performance of ST Jinggu,using the method of qualitative analysis and grey correlation analysis.Conclusions are as follows:(1)the separation of cash flow rights and control rights has a negative effect on financial performance.(2)the matching degree of board seats and shares has a positive impact on financial performance.(3)executive incentive has a positive impact on financial performance.(4)the independence and professionalism of the board of supervisors have a positive impact on financial performance.Finally,according to the existing conclusion and ST Jinggu problems,suggestions are as follows:(1)improve the relevant laws and regulations.(2)improve the quality and level of information disclosure of listed companies.(3)improve the independent director system.(4)improve the cumulative voting system.(5)improve the long-term incentive mechanism for senior management.(6)improve the performance of the board of supervisors.