Corporate Governance Structure And Financial Performance Correlation Analysis

Along with the development of capital market, corporate governance of listed companies is getting notable. Establishing a perfect corporate governance structure is useful for both enhancing shareholder value and making a healthy development capital market. It is important to pay more close attention to corporate governance, because we are suffering financial crisis, and the risk of operating in the capital market for the listed companies is higher and higher. Due to the international and domestic complicated market competition environment, listed companies have to perfect the corporate governance structure to establish a modern enterprise system, then get a living space. Therefore, it is significant in theory and practice to analysis the correlation between corporate governance structure and financial performance.First of all, this dissertation discusses the corporate governance and financial performance theoretical basis respectively. Choose the proportion of independent directors, averages salary of top three of higher administrative staff, top five of the shareholding ratio and corporate governance index as a measure to analysis corporate governance. At the meantime, four financial indicators ROA, CAR, ROE, Tobin's Q value will be chosen through principal component analysis method to drop power to measure enterprise financial performance. We have several concludes such as: Big shareholders occupy small shareholders'equity because of ownership concentration is still high, which is bad for corporate governance; Between The company financial performance and the proportion of independent directors exist a positive correlation; Between financial performance and averages salary of top three of higher administrative staff exist a positive correlation; Between financial performance and top five of the shareholding ratio exist a non-significant negative correlation. Between corporate governance index and the return on assets exist a positive correlation, which is more obvious when the index is high. As Index is taller, which means the asset utilization efficiency in the higher revenue increases, and enterprise can save more money.