Research on the impact of corporate governance on enterprise bankruptcy risk

Abstract

This article research on how corporate governance affects enterprise bankruptcy risk from the perspective of decision-making, audit management and risk prevention. This article analyses the results in multiple cases to analyse the bankruptcy of a company due to corporate governance issues. This research discusses the following three points. First, directors’ decisions play a crucial role in the company’s operations. Second, managers must conduct audit management of the company because staff members may ignore accounting standards and implement accounting fraud, making false descriptions of income and expense omissions. Third, risk prevention requires directors to accurately assess conflicts of interest, long-term contracts and participation risks, and future cash flow shortfalls when the company faces legal risks.