Enterprise Credit And Corporate Governance

Market economy is the credit economy; credit is the basic and the soul of market economy. For the credit absence of China's listed companies, this paper analyses it from the visual angle of corporate governance by using the theories of property rights economics and information economics and the empirical approach. From the angle of theory, firstly this paper differentiates and analyses the conception of enterprise credit and explains its origin and functions, then on the basic of confirming the conception and the content of corporate governance, it explains the essence of corporate governance from the angle of property rights, and at last it demonstrates the effects of corporate governance on enterprise credit: As the inside governance mechanism, the ownership structure has a complex influence on enterprise credit, while the enhancement of the board governance and the manager governance will both upgrade enterprise credit; This paper discusses the relationship between the outside governance environment and enterprise credit from the following three aspects: capital control market competition , manager market competition and product market competition, and finds that market competition is propitious to enterprise credit; It also emphasizes that information disclosure and the healthiness of laws interrelated corporate governance both promote enterprise credit.By using the multi-linearity regression model and the non-linearity Logit model on the 123 listed companies of China in 2002 respectively, this paper also documents: After controlling the firm characteristics variables, the corporate governance variable increases the explanation power of the multi-linearity equation and it is positively related to enterprise credit significantly; In the non-linearity Logit model, we find that corporate governance has different effects on the companies that own dissimilar credit ratings, the improvement of corporate governance will powerfully upgrade the enterprise credit especially when the company owns a lower credit rating.