Author(s)

Ming Fan

Corresponding Author

Ming Fan

Abstract

The complexity and uncertainty in the economic field have become increasingly prominent, and the financial crisis of enterprises has become more and more serious. At the beginning of corporate governance, the core proposition is to protect the interests of financial capital owners (shareholders) and prevent managers from adverse selection and moral hazard and clear the correlation between corporate governance structure and financial crisis. The higher the asset-liability ratio of the company, the more large shareholders' funds occupied, and the higher the degree of separation of the two powers of the company ultimately controlled by the local government, the greater the possibility of financial crisis of the company. The contradiction mainly includes the contradiction between internal stakeholders and external stakeholders and the contradictions between internal stakeholders, which all affect the efficiency of corporate financial governance to a certain extent. Establishing and improving the corporate governance mechanism is of great practical significance for enhancing the market competitiveness and steady development capability of modern enterprises and preventing financial crisis.

Keywords

Financial Capital, Corporate Governance, Financial Crisis