Explore the Relationship Between Financial Information Transparency and Corporate Governance Efficiency
DOI:
https://doi.org/10.54097/zvmkr734Keywords:
Financial, transparency, corporate governance.Abstract
Under the current environment of China's capital market, the relationship between financial information transparency and corporate governance efficiency is a practical research point. Based on principal-agent theory, this study first conducts a literature review to sort out the framework of financial information transparency and principal-agent theory. Using Sinopec Group as an example, the various measures to enhance financial information transparency are compared with Kangmei Pharmaceutical and the relationship between the transparency of financial information and the efficiency of corporate governance is analysed. The results show that improving financial information transparency significantly impacts corporate governance efficiency. Simultaneously, improving corporate governance efficiency can also promote the optimisation of financial information transparency. Finally, this study analyses the paths to enhance financial information transparency and the impact on all stakeholders after the improvement of corporate governance efficiency.
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