The Influence Of Corporate Governance On Corporate Credit Risk

With the development of China’s market economy, the corporate credit for long-term development of enterprises play an increasingly important role, especially for listed companies, the credit is a sign of corporate reputation, good corporate credit can bring long-term development for the enterprisespace with the objective of income, but also to meet the requirements of investors in listed companies. Because of this, the credit risk of the enterprise is the concern of all stakeholders. Once the corporate credit crisis, enterprises are likely to be ruined. So the credit risk of the research enterprise is necessary.The company’s credit is based on good internal restraint mechanism, and this mechanism is based on good corporate governance. So this is a corporate governance perspective study the impact of the corporate credit factors.In this paper, the KMV model to calculate the distance to default as the credit risk metrics. By the the company equity market value, equity volatility, debt maturity, the book value of short-term and long-term liabilities, risk-free interest rate calculated by Matlab finds the sample in each company’s distance to default and KMV model is tested to a certain extent a measure of credit risk the effectiveness of, and then use the KMV model of distance to default for the next step of the regression analysis.Regression analysis of617listed companies balanced panel data from2004to2011, while testing the fixed effects model, the random effects model, and final time fixed effects model. The regression results show that the nature of equity with the degree of ownership concentration has a significant impact with the credit risk, board governance factors are not clear. As for management, executives whether ownership, the number of supervisors accounted for the proportion of the number of executives and management expenses as a percentage of operating revenue and credit risk has a significant impact.