Research On Directorate Governance Risks And Influence Factors

In recent years, the world's capital markets have been an outbreak of accounting and other financial scandals, not only including world-renowned companies, such as Enron, Global Crossing, Xerox and the world of communication, but also including Zhengbaiwen, Yin guangsha, Kelon and other domestic enterprises. particularly in the case of Enron , the board of Enron has 17 members, 15 of them are independent directors, and many celebrities, but the company still break out fraud problem. The problems of companies mostly are related to the directorate governance. Therefore, the essay focus on the research of the board of directors, explore what impact the directorate governance risk, and control these factors, so as to reduce the directorate governance risks and improve the efficiency of the directorate governance.At present, Chinese scholars begin to study governance risks and the directorate governance risk, there is no standardized framework in this area, they also have not get a consensus about the definition of governance risks and so on.In the Empirical analysis, the paper chooses the companies which happened financial reporting irregularities in 2007, 2008, as research subjects, and selects separately a normal company for each irregular company, as a control sample for matching research. The characteristic of board of directors like the scale of directorate, independent director proportion, hold share director proportion, duality state, establishment of the four Commission and the quantity of board's annual meeting are variables, establish the relation model between the characteristic of board of directors and the directorate governance risks, use the SPSS software to count and deal with models, to analyze the dependence between the characteristic of directorate and the directorate governance risks. In study course, as the performance of the board of directors governance risks, I select the irregularity and high cost of agent as the explained variables; the scale of directorate, independent director proportion, hold share director proportion, two duty state, establishment of the four Commission and the quantity of board's annual meeting for explaining variables. The conclusion shows, the correlation between the situation of the four major committees and the corporate irregularity risks is significant positive, the correlation between the situation of directors share holding and the corporate irregularity risks is significant negative, the board's annual meeting and the corporate irregularity risks is significant positive, we don't find any significant relation between other characteristic variables and the directorate governance risks.Because of the restriction of the author' s capacity and study sample, the article still has insufficiency as follow, and need to be further studied: The sample size of article is not enough big, it would weakened the persuasiveness of empirical results in certain extent; In this page, we just carry out qualitative research for irregularity, we can do the quantitative research for it in the future; If the problem of the operational level could be solved, coefficient bankruptcy will be introduced into measuring of the directorate governance risk.