The Structural Equation Modeling Analysis On The Determinants Of The Corporate Governance Risk

Corporate governance is the interest balance between the company and its stakeholders, including shareholders, creditors, suppliers, employers, government and community. The aim is to make scientific decisions and to reach the maximum balance of interests among all correlated partners. But in recent years, many high-level managers or other executives of listed companies have met with an accident which results from the corporate governance risk that can't be prevented by the stakeholders. So finding the determinants of the corporate governance risk is the precondition of the precaution. In this paper, questionnaires of the experts and the high-level managers are collected as data, SPSS and Lisrel are used to analyze the data. Basing on the data, the paper develops a conceptual model between the corporate governance risk and shareholding structure, internal corporate governance, external corporate governance, corporate governance culture and tests it, finally finds the determinants of the corporate governance risk.The paper is divided into six chapters. In the first chapter, it introduces the background and the motive, the research object and relative definitions, and also elaborates the research purpose and method, then proposes the new ideas. In the second one, it makes a review on the literature of the corporate governance risk home and abroad. In the third one, it analyzes the determinants of the corporate governance risk, and points out that shareholding structure, internal corporate governance, external corporate governance, corporate governance culture are the four causes for the corporate governance risk, and details the relation between the corporate governance risk and its determinants. In the fourth one, through analyzing the dimension of the corporate governance risk, the author chooses corporate performance, the relationship between stakeholders, quality of information disclosure to describe the corporate governance risk. In the fifth one, questionnaire is used as research instrument during the data collecting, and in the data processing procedure, SPSS and Lisrel are used to verify hypotheses in the model, and the SEM is also used to output a path diagram. Finally, there is a conclusion that shareholding structure, internal corporate governance, external corporate governance, corporate governance culture are the four causes for the corporate governance risk.