The Empirical Research Of The Impact Of Characteristics Of Board Governance On Corporation Financial Risk

Company in China started late,which has been the company performance and value of the company as a standard measure of a company's management,judge which is good or bad,but it often ignore the key consequences indicators "risk".As a result,some seemly good companies suddenly become ashes overnight.At the time of crying,people rarely analyze its reason.However,after the financial crisis,the internal governance and the financial risk control problems gradually become the important content of enterprise management.Now facing downward pressure on economy and severe market environment,more and more listed companies has exposed management problems,especially the financial aspect.And affecting financial risk generally has two broad categories,external factors and internal factors,external factors of enterprise can't control,but the internal factor can be improved,and internal factors is more important than external factors.Internal factors consist of corporate governance,and corporate governance is the core in the board of directors governance.In order to make the article more detailed,this article will be from the "horizontal" and "vertical" two angles,transverse and longitudinal research board governance characteristics influence on financial risk,to guarantee the richness of content.This article combines normative research with empirical analysis on the research method,which choose data from 2011 to 2015 in Shanghai and shen zhen listed company as sample,empirical conclusions get through correlation analysis and multiple regression.The results showed that the board of directors governance characteristics of "horizontal Angle",namely the board of directors of the state-owned enterprises and private enterprises governance characteristics is not the same on the impact of financial risk,specifically state-owned enterprises board size and average age of directors positively correlated to the financial risk,proportion of independent directors and board meeting frequency negatively correlated with financial risk.Private enterprise average age of directors positively correlated with financial risk,directors shareholding and board meeting frequency negatively correlated to the financial risk.At the same time,basing on the empirical results and the reality of state-owned and private enterprises make corresponding policy recommendations.Hope to be helpful to the practice and further research.