Research On Influence Of Internal Governance Structure On Listed Companies' Irregularities

In the period of transition,China's securities market,as a new subject in the world securities market,has become an important part of our socialist economic system and national life after more than 20 years of development.It plays an important role,that is not to be ignored,in promoting economic structure adjustment,optimizing resource allocation and accelerating the establishment of modern enterprise system.With the stable and rapid growth of the economy,while the securities market is booming,the unsound market mechanism has also brought the opportunity for some listed companies to break the rules.Different types of violations and different irregularities affect the effectiveness of corporate governance in different levels and to different degrees,has impeded the healthy development of listed companies,infringed the vital interests of investors and seriously affected the development of securities market.With the establishment and development of the modern enterprise system,the separation of the ownership of the company and the right of management,will inevitably lead to the problem of principal-agent,while brings the better performance.According to the hypothesis of the rational,the shareholders and managers will inevitably conflict with their own interests,but the corporate governance is a mechanism of balance produced to solve this kind of conflict.An excellent internal governance structure can give investors a firm confidence,benefit the company to gain long-term investment and partners to improve their performance,and also a good internal governance structure is an important factor in preventing the violation of listed companies.A transparent business process,contributes to improve the transparency of the stock market,reduce investment risk,and is a guarantee for protecting investors' interests and healthy development of the market.All listed companies in Shanghai and Shenzhen are selected as research samples.Through Logistic regression,Poisson regression and GA-BP neural network,the influence of the internal governance structure of listed companies on the probability and frequency of the violation behavior of the company are explored.The results show that the larger the internal governance team of the listed companies and the lower the salary level,the greater the possibility of the irregularities and the higher frequency of the violation.The combined of the two positions and the proportion of independent directors has a positive explanation for the probability and frequency of the occurrence of the illegal behavior of the listed companies,and there are negative explanatory functions of the complete agency variables in the "four committees",but they are not significant.In addition,the area of the listed companies,the nature of the actual controller of the company and the property of the industry all have an impact on the company's illegal behavior.The GA-BP neural network can be more effective for the listed companies to make an early warning of whether the illegal behavior of the listed companies.The overall success rate of the sample is 89.44%,and the probability of the occurrence of illegal behavior of listed companies is 92.22%.