Corporate Governance And Operating Results Of The Correlation Study

With the increasing of corporate competition and the development of capital market, firm theory and firm finance theory widely researched that corporate operating and finance activity influenced corporate performance. Moreover, the effect of corporate governance will influence corporate performance decisively and greatly. But presently, there exist ill ownership structure low effect board and shortage of manager restriction and incentive mechanism, which not only impair listed company coming on foundation , but also have ill effect on improve company performance and firm merit. So, this article is established in listed company, seek after and research the correlation between corporate governance and corporate performance, especially the influence of corporate governance factors to firm performance.Firstly, by means of the method of normative research, this article interprets different understanding of corporate governance and the mechanism of corporate governance, analyzes two types of corporate governance system, and analyses the characteristics of corporate governance of Chinese listed companies. Secondly, based on the practice of Chinese listed company, I analyze and dissertate theoretically the acting principle of different corporate governance factors on improving firm performance. To validate the research conclusions above, this thesis makes further empirical research on wholesale and retail companies listed in Shanghai and Shenzhen Stock Exchange by designing and employing logit model. Conclusion is what exits a significant positive association among the proportion of ownership structure the proportion of board and the proportion of manager incentive and restriction. In the end, according to the empirical results, I put forward corresponding advices for policy establishment in order to optimize corporate governance and improve corporate performance.