Comparative Study On Corporate Governance Of Private Enterprises Listed In Mainland China And Hong Kong

In recent years, rapid developments of China private enterprises have made great contribution for the economic growth in China. More and more attentions are paid to the private enterprises, especially in corporate governance. The private enterprises are embarking a new phase on seeking a listing on the financial markets. Some companies had chosen to pursue the listing in China. Some of them had been listed on international overseas markets.Firstly, this article examines the development of private enterprises. Secondly, we study the characteristics, problems and improvement methods of corporate governance through reviewing a lot of academic literatures from China and foreign countries systemically. Thirdly, we process an empirical study to make comparative analysis on the mechanism of shareholders structure, board of directorship system and executive incentive program with the impact of company performance. The samples are selected from the private enterprises newly listed in Hong Kong and China in 2007. Using descriptive statistical analysis and regression, we explore corporate governance and its relationship with the company performance in different financial markets. The results of the statistical analysis show that there is no significant difference on the corporate governance between China and Hong Kong listing private enterprises. The findings also indicate that there is no significant effect on its relationship of corporate governance with company performance in different financial markets. Finally, based on the research findings, we presents recommendations for the private enterprises, we hope to provide some contributions for the private enterprises to improve its corporate governance.