Research Of Bank Monitoring And Enterprise Financial Risk

Study of the financial risk has always been a leading edge and hotspot topic inthe financial field. Enterprise management and the interests of stakeholders haverelationships with the level of financial risk inextricably. Therefore, in order toprevent the financial risks effectively, research of the influence factors of the financialrisk becomes critical. After the American financial crisis in2008, academic circlesintroduced corporate governance to the research of the enterprise financial risk. Theyconsidered the corporate governance has a positive management effect for thefinancial risk. However, scholars were more concerned about the influence of internalcorporate governance to the enterprise financial risk, such as ownership structure,board characteristics, etc. Study on the relationship between the external corporategovernance and financial risk was less. It mainly concentrated in the study of creditorgovernance effect. In the period of economic transition of China, imbalance incorporate financing structure is more serious and debt financing depends on the bankexcessively. The bank as the largest creditor owned information advantage canmonitor the money-borrowing enterprises effectively. Therefore, bank creditor’s rightsof independence from other creditor’s rights. It is more meaningful to study the effectof the supervision role of enterprise financial risk. In this paper, we study therelationship between the banking supervision as an external governance mechanismwith the enterprise financial risk. It provides some reference for the study of therelationship between the external governance mechanisms, such as suppliers,government, external audit and external governance environment, etc and thecorporate financial risk.This article selects the bank loans, bank loan term and bank deposits as proxyvariable of bank supervision to study, and uses the non-financial listed companies inChinese a-share market during the period of2008-2011as samples. We use theliterature research, the correlation analysis and multivariate linear regression analysismethods to explore the relationship between bank supervision and enterprise financial risk. The results show that the bank supervision is helpful to reduce the enterprisefinancial risk. In particular, bank loans to the enterprise financial risk has a negativeimpact which means the bigger the bank loan, the smaller the enterprise financial risk.Short-term and long-term loans to the influence of enterprise financial risk are notobvious. Bank size has a negative influence on the enterprise’s financial risk whichmeans the bigger the bank deposits, the smaller the enterprise financial risk.