The Influence Of Corporate Governance On Corporate Financial Performance

Financial performance is the embodiment of the development status and operating results of the enterprise in a period of time,and improving the financial performance level of the enterprise is not only the foundation of the enterprise’s survival,but also one of the goals of the sustainable development of the enterprise.By disclosing high-quality information to the outside world,enterprises can not only reduce the asymmetric cost of information between enterprises and investors and creditors,but also send signals to the outside world that enterprises are running well,obtain more opportunities and investments,and thus help improve the financial performance of enterprises.In addition,corporate governance can have an important impact on the quality of corporate information disclosure and financial performance from multiple perspectives.Therefore,starting from the intermediary role of enterprise information disclosure quality,this paper explores the relationship between corporate governance and financial performance,and provides guidance for enterprises to better improve financial performance.This paper uses the literature analysis method and the empirical research method,and after sorting out and analyzing a large number of related literature,we explore the intermediary transmission effect of enterprise information disclosure quality between corporate governance and financial performance.Considering the influence of the nature of enterprise property rights and enterprise scale on the quality of enterprise information disclosure,corporate governance and financial performance,this paper further analyzes the difference of the intermediary effect of information disclosure quality between corporate governance and financial performance under different property rights and enterprise scale.In addition,it also comprehensively considers a variety of factors affecting corporate governance,uses the principal component analysis method to construct a comprehensive index of corporate governance,which is used to measure the corporate governance level of enterprises,and uses the Shenzhen stock exchange’s assessment results of the quality of corporate information disclosure to measure the quality of enterprise information disclosure,and uses the return on total assets to measure the financial performance of enterprises.With the help of the principle of mediation effect test,the research model of this paper is constructed,and the empirical test is carried out by using Stata software.This paper selects the data of listed companies on the Shenzhen Stock Exchange from2016 to 2020 as a research sample,and after collation and screening,a total of 8703 observations are obtained,and the empirical analysis is carried out according to the test steps of the intermediary effect,and the following conclusions are drawn:(1)Corporate governance can positively affect the financial performance of enterprises.(2)Corporate governance can promote the improvement of the quality of corporate information disclosure.(3)The quality of corporate information disclosure plays a part of the intermediary role between corporate governance and financial performance.Through further research,it is also found that compared with state-owned enterprises,the quality of information disclosure of non-state-owned enterprises has a more significant intermediary role between corporate governance and financial performance;compared with smaller enterprises,the quality of information disclosure of larger enterprises has a more significant intermediary role between corporate governance and financial performance.At the end of the article,based on the research conclusions of this paper,several targeted suggestions are put forward for the future development of corporate governance and information disclosure quality.