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Corea del Sur
In recent years, with the increasing complexity of corporate governance structure, the importance of executives' legal background on corporate decision-making and compliance has gradually come to the fore. By combing domestic and international studies, we analyze how executives' legal background affects financial fraud and financing constraints by influencing the internal governance structure and decision-making mechanism of enterprises under the current rule of law environment in China. Executives with legal background can better identify and prevent financial fraud risks by virtue of their familiarity with laws and regulations and their awareness of risk prevention and control, so as to safeguard the financial integrity and market reputation of enterprises. At the same time, executives with legal background can reduce the information asymmetry between enterprises and external investors by improving the internal corporate governance mechanism and optimizing the information disclosure system, thus alleviating the financing constraints of enterprises. This paper provides theoretical basis and practical reference for improving corporate governance and optimizing enterprise financing environment, and also provides useful reference for the improvement of relevant laws and regulations and the formulation of regulatory policies.
