Financial Development, Corporate Governance And Corporate Value

Since the financial crisis,China's financial support and a series of macroeconomic policies,China's financial market has gradually recovered and a certain degree of development.By the end of 2014,China's financial monetization ratio was 1.93,the ratio of financial related to up to 2.55,indicating that China has established a relatively sound financial intermediation and financial market system.The continuous development of financial markets and financial intermediaries and perfect for the company to bring more financing channels to alleviate the information asymmetry and agency problems,expand investment,enhance the value of the company;on the other hand,due to the separation of ownership and management rights in modern companies,shareholders and management are not consistent,financial intermediaries as creditors or shareholders to participate in corporate governance,behavior restraint and supervision of the company management,reduce the opportunism behavior of the management,enhance the value of the company.Therefore,it is very important for us to observe the relationship between financial development and the value of the company more and more,in the environment of the rapid development of China's finance,but the uneven development of regional finance.This paper from 2007 to 2014 as the sample period on the basis of analyzing financial development,corporate governance and corporate value of related literature at home and abroad,the integrated use of knowledge of finance,economics,management science and behavior science,the company financial development theory and governance theory as the theoretical basis,combined with the background of the development of Finance in China.Methods of combining normative and empirical research.First,select the indicators to measure the level of financial development,company governance and the value of the company,the corporate governance mechanism includes supervision mechanism and incentive mechanism,and through the factor analysis method to calculate the comprehensive score of supervision mechanism and incentive mechanism;secondly construct the value model between corporate governance and financial development,the company,from the relationship between the corporate governance from the perspective of financial research with the development of the value of the company,and to explore the mediating role of corporate governance in the relationship between financial development and the value of the company.The panel data regression model found that financial development can significantly improve the corporate value;corporate governance mechanism can significantly improve the value of the company,but in the supervision mechanism of the corporate governance mechanism,the effect on the value of the company is more significant;corporate governance mechanism can promote the positive relationship between financial development and the value of the company,the incentive mechanism is not on the relationship between the significant effect of financial development level and company value,so the incentive mechanism to promote the supervision effect is positively related to the effect of the relationship between financial development and the value of the company is better than.Based on these findings,this paper puts forward the corresponding policy recommendations for the two aspects of financial development and corporate governance,with a view to the rapid development of China's listed companies.