Study On The Investor Protection And Finance Risk Prevention

Protecting investor's legal equities, always is the key of our country securities supervision. Especially is the international financial crisis that exploded in the end of 2008, which has also bringed more apocalypses for governors to strengthen the protection of investor's equities. This financial crisis is the crisis of investor's protection and education to some extent, and is also the crisis of investor's confidence for financial market development. After this crisis, all countries are trying hard to set up a more perfect and sound system for investor's education. A perfect and sound protection mechanism for investors is the inevitable request for stable development of the finance markets.The article sums up and concludes the research field of investor's protection both at home and abroad, on this basis we established the research area of the article: The investor's protection and the stability of capital market. Based on the theory, we maked use of the search method of questionnaire and substantial evidence analysis later on, discovering the small investor have understanding and comprehension to the strong stockholder's tunnel-behavior and the question of investor's protection. The quality of investor's protection will effect investor's confidence, transaction behavior, investment strategies and the viewpoint of market's whole development. These impacts will get to market by the way of investor's reaction, bringing negative impact to market. But the search result of substantial evidence expresses in five variables of representing the investor's protection level, in addition to " the law runs index", " correction director's check and supervision index", " check and supervision index of self-trade" and " class index of accounting standard " and "information disclosure index" all shows conspicuous positive correlation with anti- impact in the market, this means promoting the level of investor's protection will help the enhancement of anti- impact in the market. Synthesis to see, improving the state of investor's protection will surely contribute to strengthen investor's confidence and thus is advantageous to the elevation of capital market's stability (anti- impact capability).Finally, according to search, article gived some suggestions to improve the condition of investor's protection and guarding against financial risk, include perfecting the relation of supervisory board and the board of director, perfecting independent director's system, standardizing the behavior of controlling shareholders, perfecting voting method, perfecting the system of information supervision, and perfecting the supervision system of the securities markets.