Research On The Index Evaluation System Of Chinese Family Controlling Listed Company Governance

The family controlling listed companies that develop swiftly and violently in our country have been playing a significant role in the economy. Until now, the research on taking family controlling listed companies as a single sample is very less, especially on the evaluation of family controlling listed company governance. Therefore, this paper will make a research in this field. According to the corporation governance theory and the differences of family controlling listed company in corporation governance compared with other kind of listed companies, the purpose of this paper is concentrating on creating a index evaluation system of Chinese family controlling listed companies.Based on the research result of corporation research center of Nankai University CCGI^NK and considering the availability of index, some indexes are deleted including the top managers taking occupation in government department, consumption system basing on business and the differences of family controlling listed company in corporation governance. At the same time, this paper chooses sixes different indexes driven by company value. These indexes are made up of cash flow rights, departure of cash flow rights and control rights, family members in board of director, family members in supervisory committee, family members in top managers and the person taking the roles of director and general manager. Then taking the previous research results as the evaluation criteria of indexes, and using AHP method to calculate the weight of each index. After these efforts, the indexes evaluation system of Chinese controlling listed company (FCCGI) is set up. In order to test the effectiveness and scientific ness of this system, this paper takes forty family controlling listed companies as the research sample and set the unitary linear equation between FCCGI and company performance measured by net asset per share (NAPS).The results indicate that this evaluation system can effectively explain the corporate governance status of Chinese family controlling listed companies. At the same time, it finds that there are six sample companies'FCCGI score lying in 60 to 70, twenty-two companies in 70-80, twelve companies in 80-90, this group of statistics data the corporation governance of Chinese family controlling companies is in a good level in the whole, but it is not in a high level. Therefore, this paper analizes he reasons of this situation. Furthermore, it lists out the improvement measures.