Study On The Characteristic Of Board Of Directors In The Listed Company’s Impact On The Possibility Of Financial Crisis’s

The financial situation of a company directly affects all aspects of the company management, and concerns the company’s survival and long-term development. If a company trapped in financial crisis, it will endanger the survival of itself, and also harm the interests of its shareholders, creditors and other stakeholders at the same time. As the key of corporate governance, the board of directors plays a very important role in a company’s management and development. A reasonable board arrangements will directly benefit a company’s operation performance and prevent the happening of financial crisis. So it has theoretical meaning and practical value in some degree to research the possibility of a listed company’s financial crisis from the perspective of the board of directors’ characteristics.From the board size, the chairman and general manager of the occupational settings, the proportion of independent directors, the number of board meetings, the directors’ remuneration, and the directors’ shareholding proportion this six aspects, my paper demonstrates the mechanism of the characteristics of the board of directors to the enterprise financial risk, adopting the method of combining theoretical analysis and empirical research. Based on the data from 2010 to 2014 of the A listed share companies in Shanghai and Shenzhen, using statistical analysis software Stata12.0 to do descriptive statistical analysis, correlation test and linear regression analysis and robustness testing, test assumptions. This study found that the board size is positively related to the possibility of financial crisis; the chairman and general manager of the occupational settings is negatively related to the possibility of financial crisis; the proportion of the independent directors of the company is negatively related to the possibility of financial crisis, but the relationship is not significant; and the times of the board of directors meetings is significantly positive correlation to the possibility of financial crisis; the directors’ shareholding proportion shows a significant negative correlation to the possibility of financial crisis; the directors’ remuneration shows a significant negative correlation to possibility of financial crisis. According to the research results, and combining the current situation of the board of directors, my paper also offers suggestions about how to improve the structure of the board of directors of the listed company in our country to reduce the risk of the enterprise financial.