Empirical study on the impact of corporate governance on enterprise risk management: evidence from Zhejiang province in China

摘要

This paper provides evidence on how corporate governance influences enterprise risk management in certain ways in China. Using a sample of non-financial listed companies in Zhejiang province, we show that the main components of corporate governance have been correlated to enterprise risk management. Companies with high ownership concentration, high degree of ownership balance, oversized board overlapped ownership and management stewardship have weaker risk management. And more independent directors in the board, high executive payment and management shareholding proportion improve risk management. This paper contributes to prior research on the effects of corporate governance and risk management.