A Research On Insider Control And Performance Of The Listed Companies On GEM

Since the problem of corporate governance has received extensive attention, ithas been focused on the research on the agency problems of principal-agentrelationship between owners and operators. In addition, the operator-based "insidercontrol" issue has been the core of corporate governance research. However, with theownership from scattered to concentrated, the behavior of large shareholders incorporate governance becomes more important as the current hot topic of discussion.GEM set up to run for two years has exposed many problems, such as theover-raised capital of the seconds tier market, misappropriation of funds in disguise,original shareholders misappropriating behavior, senior managers cash shares byresignation, financial and patent fraud, performance "face-off". This article will be putthe insider control issues to a broader perspective, and consider that because of thenatural property and governance characteristics of the listed companies on GEM, allinsider control problem occurring within them is the management layer controlintertwined with shareholder control.On the basis of the review and commentary of domestic and foreign scholarsresearch and existing theories, this paper explores the mechanism of formation ofinsider control problem, performance and impact，the mutual relationship between insider control，corporate governance structure and performance. It draws on thestructure, conduct and performance (SCP) of industry analysis model to build ameasurable indicators system of insider control about GEM listed companies and a"governance structure-control behavior-performance" research framework, and thenputs forward the hypothesis. This paper selects the sample data of GEM listedcompanies to find out the insider control factors, which affect corporate governancepractices, and verify the relationship between insider control problems and companyperformance. Study finds that the company’s internal governance mechanisms indeedaffect the company’s performance, so as to find the empirical basis for improving thecorporate governance structure of the GEM, controlling "insider control issue" andimproving the performance of companies.