Analysts' Concerns? External Supervisors And Corporate Values

In recent years,with the continuous development of the capital market,government departments and securities regulatory authorities have continuously improved the relevant laws and the related qualities of external investors have continuously improved,and the importance of the internal governance structure of the company in the capital market has also been continuously highlighted.The corporate governance structure represented by the United Kingdom and the United States is a certain framework of mutual relations formed by the owner,the board of directors,and the managerial level.Compared with western developed countries,China's capital market is still not perfect,and the market's supervision of the company is not effective.China has imitated the corporate governance model of countries such as Japan and Germany,established a board of supervisors under the general meeting of shareholders,supervised the company's management and financial issues,and formed a corporate governance structure with shareholders,board of directors,managers,and board of supervisors as the main body.The board of supervisors takes A unique corporate governance model that distinguishes itself from Western countries plays a role in balancing with the board of directors,which has transformed China's corporate governance model from a one-element model to a binary model.The establishment of the board of supervisors system will undoubtedly usher in a new stage of development for corporate governance in China.With regard to how companies increase corporate value,scholars in the theoretical community continue to think from the internal and external perspectives of corporate governance.Most scholars mostly think from the perspective of internal corporate governance,such as improving equity structure,reducing opportunistic behavior of managers,and reducing financial constraints.The "Company Law" promulgated by China stipulates that the company shall establish a board of supervisors,and the board of supervisors and the board of directors shall be elected by the general meeting of shareholders.The board of directors implements management rights on behalf of shareholders,and the board of supervisors independently exercises supervision over the company's board of directors and management.With the introduction of the system of independent directors into China,some companies have also introduced external supervisors,ie,independent supervisors.The establishment of the board of supervisors system has played an active role in strengthening the sense of responsibility of the company's managers and the board of directors,and promoting the sound management of the company.It is of great significance in strengthening and improving the internal governance of the company in China and safeguarding the interests of investors and small and medium shareholders.This paper first sorts out the relevant literature and the theory of the supervisory board system,analyst attention and company value,and then evaluates the performance of the 614 listed companies from the perspective of external supervisors.Then use STATA 12.0 to empirically analyze whether the difference in the proportion of external supervisors has an impact on the company's value,whether it can improve the company's value,and further studies whether the attention of analysts has a certain role in promoting the external value of the company's supervisors.This article argues that the supervisory board system of listed companies in China and the external supervisors established have a significant impact on the value of the company.The ratio of external supervisors is significantly positively related to the company's value.Therefore,it is very necessary for the company to improve the supervisory board system and introduce a certain percentage of external supervisors.In addition,the attention of analysts,the company's external information media and monitoring mechanisms,can promote the external supervisors to perform more diligently overseeing the company's executives and the company's business through the company's tracking,analysis,and forecasting methods.This shows that the listed company The more analysts follow the number of analysts,the stronger the independence of the external supervisors in supervising the company and the higher the value of the company.The conclusions of the article are consistent with the assumptions and illustrate the need for the company to introduce external supervisors.In order to make the research results robust,this paper adopts a measurement method that lags behind the ratio of external supervisors and the value of the replacement company.The regression results are consistent with the previous text.The research results of this paper have also played an inspiration role for government departments and listed companies.Government departments and listed companies should attach importance to the supervisory board system,strengthen the independence of the company's board of supervisors,introduce a certain percentage of external supervisors,and insist on implementationin order to achieve the sustainable development of listed companies.