Abstract: Improvement of corporate governance is the effective way to improve the quality of the listed companies and promote the stock market to develop healthily.On the basis of expanding the LLSV basic model,this paper sets up an appropriate game theory model to analyse the effects of the tendency of legis lature of Securities Law and investor litigation on the improvement of corporate governance research think ing of LLSV model,and makes impirical test of hypothesizes drawing from the theoretical model by using relevant data samples from 75 countries and regions.The following two major findings are obtained:First1y,the tendency of legislature of Securities Law should be focused on the investor suit rights,while the mandating disclosure and directors' liability don't have significant influence on the corporate governance.Seco ndly,among those law enforcement factors,the impartiality of courts are most important to the improvement of corporate governance,the duration of a lawsuit also has positive effect,but that effect is very weak.while the direct cost in a lawsuit does not matter.

Key words: tendency of legislature, investor litigation, corporate governance