Financial Governance Structure And Financial Performance

In recent years,the development momentum of New OTC Market has been in full swing,with 8953 enterprises successfully listed from 2013 to December 2019.But problems such as poor market liquidity,few investors and poor disclosure mechanisms ensued.Therefore,in June 2016,New OTC enterprises implemented a hierarchical system in order to solve the liquidity problems of listed enterprises.Those enterprises that meet the three criteria of market value,operating income and profit entered the innovation layer,and those that do not are automatically classified into the basic layer.The enterprises that enter the innovation layer are higher in both growth and maturity than the enterprises of the base layer,and they will have more benefits than the enterprises of the base layer,but at the same time they also need to comply with the strict governance structure and regulations.So,is this governance structure reasonable or virtual? Will the value of the enterprise be realized? Both require further research.Therefore,this paper starts with the financial governance structure to study the impact of financial governance structure on financial performance in New OTC Market innovation layer.Starting from the composition arrangement of financial governance structure,that is,financial capital structure and financial organization structure,this paper explains the mechanism of financial governance structure on financial performance.The impact of financial governance structure on financial performance of 83 innovative enterprises on New OTC Market from 2015 to 2018 was studied by using the financial data of 83 innovative enterprises on the new third board from 2015 to 2018.This paper firstly uses SPSS.20 software to conduct factor analysis on 15 indicators of financial performance of innovative enterprises on New OTC Market from six aspects: profitability,debt paying ability,operation ability,development ability,cash obtaining ability and innovation ability.Finally,six common factors are extracted and the comprehensive performance score Y is obtained.Then,the comprehensive score Y and stata.15 software of this performance were used to conduct multiple regression analysis on financial governance structure and financial performance,and the following conclusions were finally drawn: From 2015 to 2018,the performance score of innovative enterprises on New OTC Market was generally negative,and the financial performance decreased year by year.The ratio of debt to capital is negatively correlated with financial performance.Equity concentration degree and equity balance degree are positively correlated with financial performance.Board shareholding ratio and executive shareholding ratio are significantly positively correlated with financial performance.The relationship between short-term debt ratio and the number of supervisory board members and financial performance is not significant.In view of the above conclusions,the following countermeasures are put forward: firstly,improve the performance level of enterprises,and take into account the six aspects of profitability,solvency,operation ability,development ability,cash ability and innovation ability.Secondly,the capital structure of the enterprise should be optimized,and the long-term debt ratio of the enterprise should be appropriately raised.In the end,it is necessary to establish a relatively centralized shareholding ratio.While appropriately increasing the scale of independent directors,it is necessary to effectively guarantee the role of the board of supervisors and establish a reasonable incentive mechanism for managers.