An Empirical Study On The Relationship Between Corporate Governance And Corporate Performance Before And After The Reform Of Non - Tradable Shares

Good governance structure of listed companies, is to establish a mechanism for themanagement and supervision of listed companies, sound and listed companies to pursuethe best interests of the shareholders of the target to ensure that all interested parties canget a fair and reasonable treatment. Under the system of tradable shares, our corporateexistence of two different types of non-tradable shares and outstanding shares of stock, inthe case of non-tradable shares account for the majority of cases, the shareholders oftradable shares can not oversee business operations. With the implementation of the sharereform to solve the problem of non-tradable shares and tradable shares between inequality,allows companies return to the market pricing mechanism, through the rational flow ofequity, capital markets play a supervisory functions of the others, to improve businessperformance.This study investigates the relationship between corporate governance and corporateperformance before and after the share reform, so the selected Shanghai and ShenzhenA-share listed companies in1999-2011was655for the study, the use of corporategovernance variables, including: board size, outside directors the proportion of part-timechairman of managers, institutional holdings person, insider ownership, shareholding andother countries carried out analysis and Tobin’sQ as performance measures, in order tounderstand the good and bad corporate governance system is vital to business value.An Empirical Study of the effect of mining Panel Data model regression analysisshowed that the proportion of outside directors, institutional holdings person, holding thecountry insider ownership on corporate performance have different levels of performancesignificantly affect the share reform for-After the implementation of the share reform hasnegative impact on the size of the Board, Director for External proportion positively, theproportion of institutional ownership has negative impact on people, the proportion ofinsider ownership positively impact, as the holdings of the National proportion hasnegative impact. But the chairman serves as the manager’s part no significant impact,which means that little performance impact on business performance.