The Mechanism Of Corporate Governance Impact On Financial Difficulty: Economitric Analysis

The enterprise has the financial difficulty can bring the enterprise, the investor, the creditor the heavy loss, the major industry has the financial difficulty even to be able to have the possibility to cause the country economy to be threaten safely, therefore, the research related enterprise financial difficulty has the significance extremely. The domestic and foreign scholars already realized this point; the research literature about financial difficulty has been extremely rich. But in the multitudinous financial difficulty research literatures, we discovered that the literatures about the corporate financial difficulty origin research are few. But only we understand the reason why the company has the financial difficulty, we are able to avoid the corporate financial difficulty and found the correct solution to solve it. Therefore, this article chooses the origin of the financial difficulty as the research direction. After the analysis, we know that, the causes that the companies to have the financial difficulty are many, but the incomplete corporate governance is the basic reason. Therefore, this article finally selects a topic that is the mechanism of corporate governance impact on financial difficulty. The company governance mainly includes the stockholder's rights structure, the company internal government mechanism and the company exterior government mechanism, this article we will find the financial difficulty influence from these three aspects of the corporate governance.The stockholder structure influents company achievement through the influence on corporate governance. When inspect stockholder structure to company achievement influence, scholars also becomes the stockholder structure refinement the stockholder constitution and the stockholder concentration degree, and inspects the stockholder structure from these two angles to the company achievement influence. At present our country scholars have some inaccurate place in the stockholder structure to the company achievement influence. For instance in the inspection stockholder constitution to the company achievement influence, the state shares, the legal person stock proportion value input model which announces the annual report in carries on directly the real diagnosis examination, this procedure has owes appropriately. Because the state shares proportion and the legal person stock proportion which in the annual report are all state shares proportion and the legal person stock proportion of the company. It possibly distributes in many shareholder's hand. A legal person stock shareholder has the company 60% stockholder's rights respectively to have the company 20% stockholder's rights sum total with three legal person stock shareholder to have the company 60% stockholder's rights. But the legal person stock proportion which demonstrated in to be listed's annual report is same. But, these two stockholder's rights structure to be listed's influence is actually different. Because, preceding company possibly appears greatly invades the young shareholder's benefit and reduced company achievement thus because major stockholder alone. But latter company thus because displayed the stockholder's rights to keep in balance the function to have the very good corporate governance appears the situation that the company achievement increase. Therefore, was similarly the legal person stock proportion accounts for the company total capital stock 60%, two company's legal person stock proportions to the company achievement influence were different. Therefore, we designed a new method to inspect the stockholder's rights structure to the corporate financial difficulty.Regarding the inspection stockholder's rights concentration degree to the corporate financial difficulty, our procedure is as follows: First, we will divide the sample company to the stockholder's rights high degree of concentration and the stockholder's rights is centralized two big kinds with the standard that the company first major stockholders to be bigger than 50%.Then, we will further divide the stockholder's rights to be centralized to the non-holding shareholder's company and the holding shareholder's company with the standard that Hu Ruin (2003).Finally, we used the Logit model to carry on the examination to three stockholder's rights concentration degree to the corporate financial difficulty. The result indicated that, the stockholder's rights high degree of concentration has the absolutely holding shareholder's company not easiest to have the financial difficulty. Our regarding this explanation is, controls stock the shareholder for to avoid company ST absolutely the loss which brings for oneself, has carried on the more earnings management.Regarding the inspection stockholder's rights constitution to the corporate financial difficulty, our procedure is:First, make the stockholder's rights high degree of concentration with the absolutely holding shareholder's company and the stockholder's rights centralized with a holding shareholder's consolidation company a kind, then possesses the sample company to divide the holding shareholder's company and the non-holding shareholder's company two big kinds.Then, regarding the non-holding shareholder's company, we lead state shares, the legal person stock and the circulation stock proportion which in the annual report to the model to inspect it to the corporate financial difficulty.The result discovered that, the state shares, the circulation stock is not remarkable to the corporate financial difficulty, the legal person stock has the remarkable negative influence to the corporate financial difficulty. This indicated, in the non-holding shareholder's company, the legal person stock shareholder displayed it to supervise companies and so on superintendent to govern the function positively, reduced the company to have the financial difficulty.Finally, regarding has the holding shareholder's company, we further divide according to the first major stockholder's stockholder's rights nature it the first major stockholder are the state shares shareholder and the first major stockholder are the legal person stock shareholder two kinds. In the state shares is in the first major stockholder's company, we inspect the state shares first major stockholder to own stocks the proportion to the corporate financial difficulty, simultaneously inspects the legal person stock to own stocks the proportion to keep in balance the function to the major stockholder.The result discovered that, but the state shares first major stockholder owns stocks the proportion and the corporate financial difficulty position inverse correlation the relevance is not remarkable, but keeps in balance the function along with the legal person stock proportion flop-in method annual bonus stockholder's rights quite to be obvious.In the legal person stock is in the first major stockholder's company, we inspect the legal person stock first major stockholder to own stocks the proportion to the corporate financial difficulty, simultaneously inspects besides the first major stockholder's other legal person stock owns stocks the proportion to keep in balance the function to the major stockholder.The result indicated that, we have not obtained the anticipated legal person stock proportion and the corporate financial difficulty position assume"U"the relational conclusion, but displayed the remarkable stockholder's rights besides the first major stockholder's other legal person stock to keep in balance the function, reduced the company to have the financial difficulty possibility.The company internal government mechanism mainly includes the board of directors, the board of supervisors and the superintendent drove.Then, we according to the predecessor the research results and our analysis result choose eight company interior government target, and established the model examination company interior government with these eight targets to the financial difficulty influence.In order to solve the company interior government variable relevant problem, we use the principal components analysis the method the information which contains these eight government variable to express with four principal components, and with these four principal components which obtains as the corporate governance the variable.Finally, examines the company interior government with the Logit return to the corporate financial difficulty position influence.We obtain the main conclusion is as follows:1. Governs the situation through the comparison financial difficulty position company and the pair sample company's company, we discovered, the board of directors scale, the independent trustee integer, the board of supervisors scale are not remarkable in the financial difficulty company and the pair sample company's difference, and board of supervisors scale in each company's population basic same, no matter were the financial difficulty company pairs the sample company board of supervisors population is 3 human of and 5 human of company numbers accounts for above this kind of company's 80%.This indicated that, the very many to be listed in to the company interior government structure establishment in, only is for conforms to the related stipulation requirement in the form, has not unified this company the actual situation to act as circumstances permit.2. Board of directors conference number of times was not the board of directors fulfills duty the work evidence, the board of directors conference frequently more is the company already has the financial crisis indication.Board of supervisors conference number of times when company normal operation and the company have when the financial difficulty does not have the difference, in certain degree had reflected the board of supervisors governs ineffectivity.3. In to the superintendent drive, we discovered represents the superintendent salary the target quite is remarkable in the financial difficulty company and the pair sample company's difference, but the drive target which owns stocks on behalf of the superintendent in two kind of company's differences is not remarkable.But the salary target difference remarkable and the stockholder's rights target difference not remarkable, this explained to the superintendent drive is the effective action. The stockholder's rights target difference not remarkable is because the superintendent of Our country To be listed owns stocks is generally low, this drive mechanism does not have the universal development in our country.The company exterior government mainly includes the creditor to govern, the product competitive market, the company domination market and the manager market.Under our country present stage condition, the product competitive market, the company domination market and the manager market are not developed, do not play to company's government role, therefore, we study the creditor emphatically to company's government function.Through the Granger method, we have drawn the conclusion that capital structure influence company achievement. This confirmed creditor's corporate governance the function.After the diagnosis research, we proposed the following improvement suggested:1. Speed stockholder structure reform. 2. Enhance board of directors's corporate governance the function. Make clear about the independent trustee and supervisor's authority division.3. Strengthen the superintendent to drive the construction. At present the superintendent stockholder's rights drove of our country also is at the start stage, therefore, must speed up the stockholder's rights drive construction.4. Consummation company's exterior government mechanism.The corporate governance should be omni-directional, like this can a better formation supplementary.