Researches On The Relationship Between Corporate Governance Structure And Performance Of Listed Securities Company

Securities companies play an important role in capital market. There are19listedsecurities companies in2011. Though with perfect governance structures, there aremany problems restricting their development. Governance structure promotes orrestricts performance, it is necessary to study the relationship between them.From the perspective of theory, the author summarized basic corporate governancetheories, as well as domestic and foreign researches. Secondly, analyzed howgovernance structure impacts performance: under the arrangement of decision-making,supervision and incentive mechanism, the board of shareholders, board of directors,board of supervisors, and managers do their behaviors to increase or reduce agencycosts, thereby increase or reduce corporate performance.From the empirical perspective, the author chose listed securities companies from2008to2011as samples, built performance variable by factor analysis, designedindependent variables and regression models. Then found out the relationshipbetween governance structure and performance by using correlation and regressionanalysis. The results showed: The ratio of the largest shareholder, the square of the topfive shareholders ratio, the ratio that the second largest divided by the largestshareholder are all have an inverted U-shaped relationship with performance. Thenumber of directors has a positive correlation with performance. Other variables haveno obvious relationship with performance, such as the ratio of state-owned shares orindependent directors, the biggest shareholder is state-owned, director and manager isone person, the number of supervisors or their conferences, management motivation.Finally, On the basis of empirical research, the author suggested listed securitiescompanies improve their governance structure by improving the ownership structure,the quality of decision-making, the management motivation and expanding assets.