A Study Of The Effect Of Agricultural Listed Company Corporate Performance On Corporate Governance

Almost all of the corporate governance literatures indicate that corporate governance structure has an important effect on the corporate value. Due to the special industry background and development characteristic, agricultural listed companies face a lot of challenges in corporate governance, including the incentive mechanism, national ownership, the board structure and so on, which do harm to the development of agricultural listed companies. A great amount of agricultural listed companies lack capital for further development. In order to promote the process of industrializing agriculture, we must pay enough attention to the corporate governance of agricultural listed companies which are representatives of excellent agricultural companies.This paper researches the relevance of the characteristics of corporate governance and corporate performance. The research data are from 34 agricultural listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange from 2007 to 2009. Firstly, this article introduces the research background, research significance, the domestic and foreign research situation, research content and research method. Second, this article has a theory review on corporate governance and corporate performance. Then six hypotheses are proposed. On that basis, a system of corporate governance, company performance is established. Finally, the article tests the hypotheses by SPSS 16.0 statistic software using data of 34 agricultural listed companies from 2007 to 2009 in Shanghai Stock Exchange and Shenzhen Stock Exchange. The corporate performance index is Tobin's Q and the corporate governance variables including share proportion of the largest shareholder, top executives shares, share concentration, the proportion of state ownership, the proportions of the independent directors, duality.This paper uses SPSS 16.0 software to study the relevance of the characteristics of corporate governance and corporate performance and discover some results:the relation between top executives shares and corporate performance is remarkable and top executives shares have a positive effect on corporate governance. The ratio of the independent directors also has a significantly positive correlation. Share proportion of the largest shareholder and duality are insignificant, while the proportion of state ownership has a negative correlation trend.At last, according to the result, agricultural listed companies should highly emphasize the importance of corporate governance, strengthen top executives shares and construct effective balance mechanism in the board of directors.