The science of examining how corporate authority is distributed is known as corporate governance, when used broadly. Viewed narrowly, it is a branch of science that sits at the level of company ownership, investigates the process of appointing professional managers, and performs regulatory activities regarding the discharge of professional managers' obligations. The "management right level" of enterprise management is based on science and involves the enterprise owner and management right authorization, or management right in the case of authorization, in order to accomplish company goals and utilize all available methods of operation behavior. On the other hand, corporate governance is built at the "ownership level" of the business based on science and deals with professional managers' scientific approval and oversight. This article investigates the role of corporate governance in the financial crisis and why stock prices did not anticipate bad corporate governance, setting the scene for the global financial crisis of 2008. On the basis of existing research, analytical studies were conducted and summarized into conclusions. As shown in this paper, inappropriate corporate governance ultimately leads to an increased risk of economic crisis. Therefore, it is important to adopt the necessary tools to improve corporate governance. Management should formulate appropriate corporate strategies and ensure that they are effectively implemented, ensure that internal controls are effective and develop a good corporate culture, etc. The government should also improve the relevant regulations and ensure their implementation.