Research On The Relationship Between Corporate Governance And Growth Of The NEEQ Enterprises

Due to the convenience of listing on NEEQ and financing efficiency,it attracts many middle and small-sized enterprises(SMEs).NEEQ have become a bridge between SMEs and investors.With the sharp blowout of the number of listed companies on NEEQ,the weakness of market policies has gradually emerged.At present,NEEQ market has not made a detailed and formal specification to corporate governance of SMEs yet,but for the SMEs the governance structure of the enterprise is closely related to the growth of the business during developing,which is easy to be ignored by operators.To improve enterprise performance and sustainable development ability,also attract more excellent investment,enterprises must pay attention to improve governance efficiency,industry status,decision-making procedure and other issues.Enterprise growth is a direct and effective reflection to the level of corporate governance and governance structure.The sustainable and healthy development of enterprises must be related with a good corporate governance.Therefore the rationality of corporate governance structure and the effectiveness of governance mechanism are necessary to improve the growth of enterprises.For the NEEQ companies,most companies are rapid growing,but generally with imperfect governance structure.It is important to improve corporate governance structure immediately.From this significance,the topic of this topic which studies the NEEQ companies' governance structure and growth has important theoretical value and practical significance.For the object of study,this paper selects the relationship between NEEQ listed companies' governance structure and growth as the research object,and selects companies of software and information technology services industry as the research sample,uses theory and practice research methods,based on the growth of SMEs theory and corporate governance theory,to analyze the effect of governance structure to growth through analysis the governance structure of SMEs and growth on status quo.In reference to Yang Limiao's(2014)and Zeng Jianghong's(2007)evaluation index systems,considering the characteristics of the NEEQ enterprises,we use principal component analysis method to build a new evaluation index system for NEEQ enterprises which includes 1 first level indicators,3 level two indexes and 9 three indicators.Then we use this system to calculate the growth score of 117 companies in software and information technology services industry.Under controlling the difference of asset size,and listing year and so on,this paper studies the relationship between governance of the board of directors with ownership structure and growth.For further study if absolutely controlling shareholder affects the growth or not,we sort the sample to two different groups according absolutely controlling shareholder exists or not.Through descriptive statistics and regression analysis,conclusions are following:About board governance with growth,the size of the board of directors has a significantly positive correlation with growth;the establishment of independent directors has no correlation with growth;duality of CEO and chairman is beneficial to improve the growth.About ownership structure,ownership concentration has a significantly positive correlation with growth;Executive ownership and equity balance degree have no correlation with growth.When absolutely controlling shareholder exists,all ownership concentration,Executive ownership and equity balance degree have asignificantly positive correlation with growth.In the end,according to the research results and combined with the facts of China's NEEQ market,this paper offers some suggestion for perfect the corporate governance structure from three aspects which are the governance of the board of directors,ownership structure,and management incentives.