Author(s)

Yanling Luo

Corresponding Author

Yanling Luo

Abstract

The goal of this article is to deeply explore the influence of different types of corporate governance structures on the financial health of enterprises, and explain the logic and mechanism behind them. This article discusses the characteristics and advantages of diversified corporate governance model, and its influence on enterprise financial decision-making, risk management and internal supervision, and then deeply reveals the relationship between this governance model and enterprise financial stability. It is found that the diversified corporate governance model has played a significant positive role in promoting the financial stability of enterprises. It improves the decision-making process of enterprises, strengthens risk management and internal monitoring, and enhances the financial stability and risk resistance of enterprises. But at the same time, we should also pay attention to the risks that this model may bring, such as the unreasonable design of governance structure, which may lead to the reduction of decision-making efficiency. In this regard, this article puts forward policy suggestions and practical strategies to optimize corporate governance structure and improve financial stability; At the same time, corresponding management and investment suggestions are put forward for enterprises and investors.

Keywords

Diversified corporate governance model; Financial soundness; Risk management; Internal control; Optimization of governance structure