Study On Early Warning Mechanism Of Corporate Governance Risk Of Listed Companies In China

Based on the risk of the listed corporate governance, this paper constructs the early warning mechanism applying the BP neural network in the process of the risk monitor-risk assessment-risk control. First, this paper risk establishes assessment indicator systems to monitor the corporate governance risk including the shareholder, the board of directors, the board of supervisors, manager using the method of statistical analysis, established; next, this paper constructs the model of the corporate governance risk using the method of entropy and Principal components analysis; then this paper screens 47 ST listed companies and with its pair 47 non-ST listed companies in 2007,uses BP neural network to establish the early warning model of the company govern risk according to the data CFLCG2008,stock exchange of Shanghai and Shenzhen, then using 30 listed companies and its pair sample data message to examine the model.The result indicates that the early warning is effective. Finally this paper put forward corresponding measures about how to deal with the risk of corportate gonvernance of listed company from four latitudes respectively.