The Empirical Research On Corporate Governance Patterns Of Companies Listed In SME Board

In the early 1980s, the term'corporate governance'was put forward officially in English literature. As the implementation of the reform and opening policy and the development of economy, China's financial market is more and more full-fledged, and corporate governance issues have gradually gain attention from regulation institutions, economics, layers and the media in China. In order to improve business performance and increase enterprise competitiveness, seeking a corporate governance patterns based on the situation of China is vital.Many factors, such as traditional culture, national economic system, market environment, legal system and so on, will shape the corporate governance patterns. Based on the analysis of the international leading corporate governance models, this paper focuses on the corporate governance patterns of the Small and Medium-sized Enterprises - the most dynamic enterprises in Chinese Listed Companies. Considering the situation of capital market in China and the characteristics of controlling shareholders, share concentration, internal and external governance, the corporate governance patterns of Small and Medium-sized Enterprises can be divided into three categories: family-control model, legal-leading model, and government-dominated model. On this basis, this paper focuses on the companies which were listed on the Small and Medium-sized Enterprises Board before the end of 2006, and analyzes the relationship between the corporate governance patterns and the corporate performance of the listed companies on the Small and Medium-sized Enterprises Board.The empirical analysis reveals that: the first, the relationship between the shareholding proportion of the largest shareholder and the corporate performance is negative; the second, the relationship between the shareholding proportion of the second to the tenth largest shareholders and the corporate performance is positive; the third, the duality has no significant influence on the corporate performance; the fourth, executive ownership can affect the corporate performance positively. For the three different corporate governance patterns, the legal-leading model was the optimal model. On the basis of the study, the research indicates some corporate governance flaws of the listed companies on the Small and Medium-sized Enterprises Board, and also makes rational advices. The significance of this research lies in that it can improve the corporate governance patterns of the listed companies on the Small and Medium-sized Enterprises Board and enhance the corporate performance.