An Empirical Study on the Impact of Corporate Governance Level on Investor Confidence Under the Supply Chain Finance

Abstract

With the rapid development of cloud computing and financial technology, supply chain finance gradually takes a significant role at the financial market. More investors consider that as the future trend of enterprising growth. There is no denying that boosting investor confidence is the foundation for a capital market to achieve sustainable development. Does the quality of corporate governance affect investor confidence? Based on theoretical and empirical analysis, investor confidence is affected by managerial compensation, managerial shareholding ratio, independent director ratio and board size. Moreover, in the sample of A-share listed companies in China stock market in 2017-2021, corporate governance level is constructed as a synthetical indicator by using PCA to investigate its impact on investor confidence under the supply chain finance model. The results show that the higher the corporate governance level, the stronger the investor confidence. Based on the above findings, a series of recommendations are put forward aimed at improving the government's regulatory capacity as well as corporate governance level.