| Since Financial Management becomes a subject, enterprise financial crises havebeen the topic concerned in the financial management research field. As we all know,it’s extraordinary important of effective control to financial risks during enterprise’sdevelopment. Information asymmetry is an inevitable phenomenon in economicdevelopment, which leads to many uncertainties during financial activities, that isfinancial management. In the practical operations, operators often attach much moreimportance to business performance and trading value rather than financial risks, whosebusiness concepts tend to bringing about some business performance with hiddendanger. In2008’s global economic crisis, investment banks bankrupted successivelysuch as Lehman Brothers Holdings, which broke out a series of crises caused by failedenterprise management, not just by bank internal financial risks.This paper is to research the relationship between corporate management structureand financial crisis, taking Shanghai and Shenzhen Stocks Markets of A-Share asevidences, establishing multi linear regression models and selecting three typical partsof corporate management structure that is owner, manager, and operator.The conclusions of this paper is as follows: ownership concentration benefitsenterprise financial risk control; high equity balance benefits enterprise being trapped infinancial crises; board members were positive relationship with enterprise financial risk,indicating complicated board structure could bring about higher financial risk; ratio ofindependent directors and corporate financial risk were negative correlation, showingthat more independent directors could be more effective to prevent financial crises; theproportion of managerial shareholdings were negative correlation with financial risklevel; senior managers’ salaries were negative correlation with enterprise financial risk,illustrating senior managers were paid higher salaries, the possibilities enterprises infinancial risk were lower.In the last, this paper give some suggestion in order to control enterprise financialrisk. |
