Research On Corporate Governance Supervision Function

Chinese enterprises have stepped into a new stage of corporate governance reform.How to establish a corporate governance mechanism that is in line with international standards and suits China's national conditions is a common challenge faced by both the theoretical and practical worlds.With weak corporate governance mechanisms,financial frauds continue to breed.This article mainly focuses on Boyuan Investment's financial fraud case,combines current research and theoretical foundations,and takes the perspective of corporate governance oversight as the research perspective.It seeks to conduct in-depth analysis of Boyuan Investment's financial fraud case,aiming to propose a sound corporate governance oversight function.Research on financial fraud at home and abroad has mainly focused on its causes,identification and governance.Different from previous studies,the research of this paper mainly starts with the supervision function of corporate governance,and explores how to improve the corporate governance function to achieve mutual checks and balances of power to further effectively prevent financial fraud.Specifically,this article firstly demonstrates that one of the main reasons for financial fraud in Boyuan Investment is the flaws in the corporate governance oversight function,and then further analyzes the main performance of corporate governance oversight deficiencies.The main manifestations are the failure of the decision-making mechanism of the general meeting of shareholders and the failure of the board of directors.The board of supervisors was in name only and the supervision of the firm was in the form.Next,analyze the causes of corporate governance oversight deficiencies from four dimensions,including reluctance to supervise,not supervise,unwilling to supervise,and not having to supervise.Finally,based on the previous analysis,specific suggestions for improvement are proposed.This article study that Boyuan Investment's internal board supervision mechanism,independent director supervision mechanism,board of supervisors supervision,shareholder supervision mechanism and external supervision mechanism all have defects.The study points out that a perfect governance mechanism helps to supervise and constrain the behavior of managers,thereby avoiding managers from increasing private benefits at the expense of harming company interests.Therefore,the company should strengthen the functions of the general meeting of shareholders,emphasize the supervision of professional knowledge,strengthen the independence of the supervision department,implement the supervision system,improve the employment mechanism of the firm,ensure the function of corporate governance supervision,and prevent the occurrence of financial fraud.