A Study On The Impact Of Business Angel To Corporate Governance

Chinese business angel industry initiated in the 1980s, it has stepped into a fast growth stage after several decades of development. Business angel capital is becoming an important source of financing for the startups. Business angels are not only the suppliers but also the managers of the capital. They established the standardized operating mechanism and effective corporate governance system under an efficient supervision and constraint mechanism, which will help the startups to continue to increase in value and healthy development.On the basis of theoretical summary and review of the related literatures, this paper conducts an empirical study on the impact of business angel to corporate governance. The sample is American China stocks from 2008-2014. In the research, we use the descriptive statistics and regression analysis. The empirical result shows that the participation of business angel can perfect the corporate governance structure, as evidenced by three aspects:lower ownership concentration, higher board independence and management ownership. The participation of business angel also has impact on performance of sample enterprise, especially on the profitability and growth ability. It’s more advantageous to enhance the corporate governance and improve the operating performance when the business angel as a director in the company. In addition, the study shows that co-investment have no significant impact on performance of company.