Financial crisis theoretical analysis based on corporate governance

The researches on financial crisis early warning methods are important applied research items. Forecasting the business financial crisis needs to take the existing financial or non-financial information to establish the mathematical model. After analyzing related achievements accomplished on financial crisis management, the relations between corporate governance and financial crisis are discussed from the view of corporate governance. A game model is established based on the theory of corporate governance to discuss the relations between stockholder´s rights structure and financial crisis risk. It´s found that if the other large stockholders´ effort degree being improved, then the probability of the majority stockholder choosing to maximize his own utility will accordingly reduce, and finally the company´s value will enhance together with financial crisis risk reducing. The result is helpful to consummating financial crisis warning research.