| Young Growth Enterprise Market (GEM) has become an integral part of China’sstock market by virtue of its uniqueness. With the rapid development of the GEM, avariety of corporate governance issues spate in GEM companies which is a seriousthreat to the GEM and the healthy development of China’s capital market. GEM listedcompanies need to find out the root of the problem, to optimize the structure ofcorporate governance and then to improve performance.Panel data of sample is form92listed companies in GEM China during theperiod2010-2011. First, this paper investigates the GEM listed companies corporategovernance characteristics in order to find crux of the matter. Second, this paperstudies on the relationship between corporate governance structure and performance,to provide theoretical and empirical support for the promotion of the growth of GEM.In this paper, empirical research consists of feature analysis of corporategovernance and endogenous regression analysis of the corporate governance andperformance. The investigation finds that the corporate governance problems of GEMlisted companies are family-controlled ownership, poor supervision as so on.Regression analysis has got the main conclusions:(1)There is a significantlynonlinear correlation between ownership concentration and Tobin’s Q.(2)Asignificantly positive relationship lies between the proportion of tradable shares andTobin’s Q, while negative between the proportion of corporate shares and Tobin’s Q.(3)There is a nonlinear correlation between Board size and Tobin’s Q.(5)CEO dualityand the proportion of Board stake have negative influences on performance.(6) BoardIndependence has a positive impact on performance.Aim to improve performance, this paper gives following advises.(1)To changethe leadership structure of the Board, chairman-CEO separation is needed.(2)Toenhance the independence of the Board, mechanisms of independent directors shouldbe improved.(3)The stake of the Board should have an appropriate reduction. |
