A Research About The Influence Of Manager Personal Character And Corporate Governance On Enterprise Risk

Since the reform and opening up, Chinese economy has slowed down gradually after 30 years high-speed development. Increasingly complicated market environment brought greater pressure and risk to Chinese enterprises, so that they had to face different kinds of challenges. As the direct performer to make investment decision, the personal characteristics of managers are inevitable influential to the enterprise investment performance. In addition, accompanied by the agency problem, corporate governance became important, it infiltrated in each link of enterprise management and had great influence on enterprise investment. Therefore, this paper takes enterprises risk as a breakthrough point, try to investigate the influence of manager personal character and corporate governance level on enterprise risk level, and make some further investigation on the economic results of enterprise risk.Firstly, this paper made a review and inducement of relevant literature, and on the basis, construct comprehensive index of manager personal character and corporate governance level. After the empirical study on data of listing corporation from 2007 to 2012, this paper drew the following conclusions, enterprises with radical managers faced higher risk; the more strict of the corporate governance, the lower enterprises risk level; higher risk level can help promote the efficience of resource allocation and enterprise value.On the basis of empirical research, this paper put forward several suggestions on the practice of enterprise management. Protect and encourage managers’ spirit of innovation. The effects of radical manager should be valued in the hiring decision, as its influence is not negative in the process of enterprise investment decision; restrict managers’ blind risk-taking behavior.