The Influence Of Private Listed Companies’ Governance Structure On Corporate Performance

Since entering the market economy, private enterprises have developed into an important part of our socialist economy. It has made a huge transformation on the scale and entrepreneurship. Private listed companies as the outstanding representative of private enterprises, its development has attracted much more attentions. In 2009 GEM officially launched. A large number of small and medium-sized private enterprises have been listed, which concludes many family enterprises. With listing wave of the small and medium-sized private enterprises, the problems in the governance structure of private enterprise started to expose. As we all know, the governance structure is one of the decisive factors of enterprise development and a perfect corporate governance structure is the half success of enterprise development. Therefore, private listed companies must pay attention to the corporate governance structure. What problems exist in the governance structure of China’s private listed companies? How does the governance structure affect the corporate performance? This subject has a significant research value. Scholars have done theoretical and empirical researches upon this theme, but they did not reach an agreement because of the differences of researchers’ era and background, the selected samples, research methods and measuring standards of governance structure and corporate performance. Moreover, the existing researches have only considered the static effects of governance structure ignoring of the persistent and hysteresis in economy, such as the time-lag influences of companies performance due to the continuity of economic movement.Therefore, this paper studies the relationship between the listed companies’ governance structure and corporate performance based on the dynamic and multi-period perspective. Firstly, this paper describes the research background, research contents and methods. Secondly, it reviews and summarizes predecessors’ theoretical and empirical results of the relationship between corporate governance structure and performance of listed companies. Thirdly it systematically analyzes the current development of private listed companies’ governance structure and corporate. Moreover, this paper classifies corporate governance structures into three aspects(ownership structure, board structure and the executive incentives) and empirically analyzes the impact of governance structure on corporate performance with measuring software(STATA). Finally, it puts forward corresponding conclusions and suggestions based on the empirical analysis in order to improve the governance structure of private listed companies.The author expects to rich the research achievements of corporate governance of our country’s listed companies and to expand the thoughts of future research in the field. This paper chooses China’s private listed companies as the sample base on the reference to the previous research conclusions, and the study period is from 2003 to 2013. It constructs static panel models and dynamic panel models controlling the influences of the company scale and capital structure, which could comprehensively study the influence of governance structure on corporate performance. The research conclusions show that: the first-lagged corporate performance has a significant positive effect on the current corporate performance, while the first-lagged executive incentive has a negative effect on the current corporate performance. The ratio of the largest shareholder, the proportion of independent directors and the number of border meeting all have a significant positive effect on corporate performance. On the contrary, executive ownership has a negative impact on corporate performance. The sum proportion of second to the fifth largest shareholder, equity balance degree, board size, whether the general manager or the chairman being one person and the sum of the top three executive compensation have different significance level in two models. Supervisor board scale and the number of executive have no significant influence in two models. Asset-liability and total assets have a significant negative and positive effect on corporate performance in two models.