Governance Evaluation of Listed Mining Companies Based on Entropy Method

¹ School of Management, Xi’an University of Science and Technology Xi’an, China
² School of Management, Xi’an University of Science and Technology Xi’an, China

^a Corresponding author: 39597495@qq.com
^b Corresponding author: 2386762423@qq.com

Abstract

Corporate governance is the basis for correct decision-making and effective management of a company. The sustainable development of a company will depend to a large extent on an effective and reasonable corporate governance structure. The mining industry occupies a fundamental position in China’s national economy and plays a very important role. In view of the particularity and importance of the mining industry, this article is based on the research theory of corporate governance, combined with the characteristics of mining companies, and uses the entropy method to conduct targeted and objective corporate governance evaluations. The research concluded that: (1) When the company is in a state of concentrated equity, the incentive and supervision measures adopted for the managers play an obvious role. (2) The larger the independent board of directors, the higher the effectiveness of corporate governance. (3) The larger the board of supervisors, the more meetings, and the more effective corporate governance, the more it can give full play to its supervision and control functions.