Research on Supervisory Effectiveness of Management Level Based on GRA: A Case Study of Chinese Listed Companies

As the main method to prevent the moral risks of the management level, the supervision is implemented by many aspects. Grounded on the basic theory of corporate finance, this paper used grey relational method to analysis the data of 1276 list companies in Shanghai and Shenzhen stock market. It explored that supervision from different executors effected the behavior selection of the management under the certain economic environment in China. Meanwhile, it also provided basis for business owners and economic administers in terms of rationalizing the arrangement of supervision mode and strengthening the prevention of moral risks.