Research of Relationship Between Corporate Governance and Financial Performance Based on Multiple Regression Analysis Method

Abstract

In the financial market, the effectiveness of corporate governance is of great significance to the operation and future development of enterprises. It can effectively promote the prosperity and development of market economy, effective corporate governance mechanism can help enterprises grow rapidly, and promote the orderly and stable development of the whole financial field. At present, the research on the correlation between corporate governance and financial performance is not clear. Multiple regression analysis method is a statistical method to analyze sample data, which can effectively analyze the relationship between variables. In order to explore the relationship between corporate governance and financial performance, this paper uses multiple regression analysis method to establish a multivariate mathematical model between corporate governance and financial performance, and makes an empirical study on the relationship between corporate governance and financial performance, and puts forward the corresponding assumptions. In this paper, the GEM listed companies in China as the research object, empirical analysis. The results show that corporate governance is significantly related to financial performance. Corporate governance has an important impact on financial performance, and plays an important role in the future development of enterprises. Good corporate governance is conducive to the stability of the financial industry.