Study On Relationship Between Corporate Governance And Performance Of China Listed Military Companies

Since the reform and opening up, military industrial enterprises outlook has been greatly improved by virtue of their advantages in technology, as well as national policies to foster continuous improvement in their own operations. The overall business success achieve the transformation from the previous planned economy and state-owned business model to a market economy and investment diversification business model. Shareholding system is an effective way to develop china’s military enterprises rapidly, it create a group of master international advanced technology, philosophy and flexible, strong marketing capabilities, high-quality companies with strong competitiveness. After military enterprises are listed. if their want to maintain good corporate performance and sustainable development capability, the military industrial enterprises must establish effective corporate governance structure, the quality level of corporate governance can affect corporate performance directly.In this paper, we take listed companies directly controlled by the top ten military industrial group for the research sample, to establish an empirical model to analyze the relationship between the military firms’corporate governance arrangements and corporate performance. Based on the theory of corporate governance, the paper analysis the development and reform latest features and policy of military enterprises, analysis the current situation of military governance structure and performance of listed companies in china. In the empirical study of the relationship between military and corporate governance structure and corporate performance, the paper study from three aspects, i.e. shareholder structure, board governance, managers incentive management. Using principal component analysis, the paper constructed performance evaluation index to reflect the operating performance of listed companies and use such index to test empirical analysis. Finally, this paper propose some countermeasures to improve corporate governance structure and governance efficiency...