The Impact Of Board Characteristics On Enterprise Financial Risk

Financial risk has influence on the survival of enterprise,and financial risk itself is affected by internal factors and external factors.External factors have effects on financial activities of enterprise,however,for fundamentally enterprise financial risk is mainly caused by internal factors.Board governance is one of the internal factors,which produce a significant impact on financial risk.Therefore,perfecting the board governance can help reduce financial risk.Based on this,we research the problem of enterprise financial risk from the perspective of board characteristics.The paper takes the listed companies in China in 2014 as the research object,from the scale of board,the proportion of independent directors,whether the chairman of the board and general manager are the same person,the proportion of directors' shareholding and the gender of chairman of the board these five aspects to research the effect board characteristics on enterprise financial risk.And on this basis,according to the controller type,the paper divides the listed companies in China into state-owned listed companies and non-state-owned listed companies,analyzing the influence board characteristics on financial risk of these two types of enterprises.Regarding the whole listed companies as the sample,the research founds out: increasing the size of board has a significantly positive impact on reducing corporate financial risk,the chairman of the board and general manager are the same person has a significantly negative impact on the decrease of financial risk,the proportion of independent directors,the proportion of directors' shareholding and the gender of board's chairman have no obvious influence on financial risk.The expanding analysis shows: in state-owned listed companies,the chairman of the board and general manager are the same person has a significantly negative impact on reducing financial risk,the board size,the proportion of independent directors,the proportion of directors' shareholding and the gender of board's chairman have no obvious effect on financial risk;the research conclusion of taking non-state-owned listed companies as the sample is same with the result of regarding the whole listed companies as the sample.