Keywords
Punitive supervision
Administrative penalties regulation
Stakeholder theory
Submitted : 2022-05-21
Accepted : 2022-06-05
Published : 2022-06-20
Abstract
Financial performance is an indicator to measure the strength of a company’s business operation capability, which is of great concern to enterprise managers, external investors, and government regulators. Based on the data of Chinese listed companies from 2012 to 2016, this paper included government administrative penalties regulation into the study of factors influencing corporate financial performance and conducted an empirical analysis. The research shows that punitive supervision has a significant negative impact on corporate financial performance; rectifying the effect on financial performance would increase the operating cost. Simultaneously, the degree of punitive supervision will also affect corporate financial performance, with the financial performance of listed companies subjected to severe punitive supervision being poorer.
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