Explorations Of Stakeholders Governance And Corporate Performance Of Gem Listed Companies In Our Country

China’s GEM market officially opened board On October23,2009.The GrowthEnterprise Market (GEM),also known as the second board market,is the new marketsdesigned for small and medium-sized enterprises and emerging companies fundingavenues outside motherboard market.The establishment of GEM not only improved thestructure of China’s capital market,but also to provide the financing channels for smalland medium-sized enterprises and high-tech enterprises.There are35companies in theGEM in2009,153in2010and so far a total of355,the scale of development fast.Gemlisted companies is unlike the companies listed on the motherboard market,most of themare high growth and high-tech SMEs,the establishment of gem alleviated the problem offinancing of SMEs to some extent,and it is of great significance to the development ofsmall and medium-sized enterprises.With the establishment of the growth enterprisemarket and increasingly mature,the gem listed company’s performance is becomingmore and more attention by people,and most of the gem listed companies in China’s areprivate enterprises and the vast majority are family enterprises.As the gem listedcompanies increased,the scale is more and more big.The problems of the governancestructure of gem listed companies are growing.For example,companies are dominatedby big shareholders,chairman and general manager to be one people and so on.So it isnecessary to introduce stakeholders participate in governance for gem listed companiesin our country.Good effective stakeholder governance mechanism may help to improvecorporate performance and enterprise value of gem listed companies.It should perfectthe governance structure of gem listed companies in China.And the realization ofstakeholders participate in corporate governance can improve corporate performance,soas to promote the long-term development of enterprises.Chinese "Corporate Governance Guidelines" and the "Company Law" emphasizethat the stakeholders should be involved in the corporate governance.It is conducive toimprove the governance structure of listed companies and improve the level ofgovernance and corporate performance.It is conducive to improve the governancestructure of gem listed companies and improve the level of governance and corporateperformance.The study of stakeholder governance are more focus on normative research,and empirical research are using questionnaires and expert scoring method.And due toresearch methods and ideas are different in this paper,literature resources are not rich.In this paper,I research the relationship of stakeholders governance and corporateperformance by adopting the combination of normative research and empirical researchmethods.Normative research part is to define the related concepts on the basis of therelated theoretical tentatively.In empirical research part,this paper puts forward fiveassumptions about stakeholders governance and corporate performance of the gemlisted companies.And this paper select after deducting non-recurring gains and losses ofthe weighted average return on net assets as the explained variables,the five dimensionsof stakeholder governance index as explained variables.This article is based on the gemlisted companies as the research object,this paper choose IPO date as of December30,2010,all of the gem listed companies as research samples,including data from2009-2011.The results show that the corporate performance of gem listed companies issignificant correlation with the degree of employee participation in management.while itdoes not correlate with the governance of small and medium investors and thesupervisory and administrative department.Partly explains the stakeholders participatein corporate governance has influence to corporate performance,employee participationin management degree is higher,it is more conducive to improve the staff’s enthusiasm,improve the performance of the company.The corporate performance of gem listedcompanies is significant negative correlation with the creditor governance.The ratio oftotal liabilities to total assets is higher,corporate performance is more lower instead.Thecorporate performance of gem listed companies is significant negative correlation withthe fulfillment situation of the social responsibility.It may be related to the companyspending on public welfare donations is not enough to fully represent the corporatesocial responsibility fulfillment situation and high-growth and high-risk characteristicsof gem listed companies in China.Gem listed companies in our country should put themain business development as a fundamental impetus and primary task.The sustainablegrowth of corporate performance can provide more employment opportunities for thesociety and alleviate employment pressure.The empirical results also show that thecorporate performance of gem listed companies is significant correlation with the shareratio of the largest shareholder.Partly explains that the improvement of the first bigshareholder’s shareholding can improve the company performance.The empirical resultsalso show that the corporate performance of gem listed companies is significantcorrelation with second to the tenth largest shareholder shareholding and the sum of thefirst big shareholder’s shareholding ratio.Partly explains that the improvement of the second to the tenth largest shareholder shareholding and the sum of the first bigshareholder’s shareholding ratio can Improve the company performance.The rising ofthis ratio is advantageous to supervise and restrain the behavior of the first bigshareholders,so as to improve corporate performance.Executives shareholding is alsosignificant positive correlation with corporate performance in this paper.Executiveshave a small amount of equity will inspire them to pursue their own interests,but withthe increase of executives equity share,their interests will be aligned with theshareholders.The increase of executives equity share helps to reduce agency costs andimprove enterprise performance.The empirical results also show that the corporateperformance of gem listed companies is significant negative correlation with whetherChairman and general manager to be one people.