Risk Assessment Model on the Internal Corporate Governance Based on the SPA

Abstract

Reasonable internal corporate governance is the fountainhead of rapid development for the corporation. Faced with the rapid development of the economics and society, the most economy benefit is the first consideration of corporation. To satisfy with the shareholders and the operators, the corporation must set up the most consummated internal corporate governance. Therefore, risk evaluation on the internal corporate governance is the premise and foundation for the corporation and it is also an important guarantee of maintaining its rapid development and sustainable development of the corporation. Neglecting the risk evaluation of the internal corporate governance will cause the sustainable development of the corporation being in trouble. Otherwise, the effective risk evaluation can help the corporation get the sustainable development. Moreover, the internal corporate governance efficiency(the internal corporate governance efficiency =max (the internal corporate governance income - the internal corporate governance costs) and the importance of the risk evaluation were introduced. Though introducing the content and characteristics of the internal corporate governance, this article gave us a new risk evaluation model to inspect the internal corporate governance. The set pair analysis was used to inspect that whether or not the internal corporate governance of the three big corporations in Handan is effective and efficient and which one is the most safe and reasonable, which is useful for corporations to get the healthy development.