Research On Relationship Between Management Structure And Corporate Performance Based On The Company’s Lifecycle

Recently,lifestyle is changing by the developing of information technology,and it has become a pillar industry.With the development of the Internet,corporate governance issues on information technology companies have become increasingly prominent.But,currently,there are few studies on corporate governance of information technology industry though it is always changing rapidly compared with traditional industries.So it is particularly necessary to research on the relationship between corporate governance and performance in this field.This paper has analysed the relationship between information technology industry company performance and governance structure by introducing the theory of corporate life.Firstly,we analysis the studies on the current business life cycle,corporate governance and Corporate Performance.Through summarizing,we found that most scholars have stayed in the static level,ignoring the enterprise in the development process is dynamic development.Though this starting point,this article has studied the relationship between corporate performance and governance structure from a dynamically.First,from the study of the relationship between the governance structure of the research and corporate performance enterprise life cycle theory and the two aspects of the literature reviewed and combed,provide empirical data for the empirical analysis below.At the same time,we analyzed and summarized the relevant theoretical foundation of corporate governance,namely,the development and classification model of corporate life cycle theory,the definition and content of corporate governance,corporate governance and corporate performance overview.Secondly,analysis of vital signs information technology companies,studied the life cycle of information technology companies partitioning one for,and proved through empirical research.Firstly,similar to the rapid changes in the IT business iteration of its product features,as well as a close relationship with the capital levels and other characteristics,and analysis of the IT business and financing cash flows,investment cash flow and cash flow from operations of the three cash flow indicators relationship.Empirical studies of a suitable IT companies cash flow improved version division method.According to the cash flow method for start-up IT companies divide,growth,maturity,and decline in transition five life stages.Thirdly,we demonstrate the relationship between corporate performance and enterprise information technology governance structure empirically.Selecting Shanghai and Shenzhen IT companies listed during 2010-2014 as samples,then selecting the explanatory variables,the explanatory variables and control variables to propose hypothetical model.This paper selected variables in three dimensions.Construction hypothetical model,the paper selected main life stages,namely the start-up,growth and maturity,for the three life stages are built corresponding models.Finally,from the descriptive statistical analysis,correlation analysis and multiple linear regression analysis of the three angles hypothetical model the empirical verification,obtained start-up period,the conclusion growth,maturity in three stages company performance and Governance Structure.Empirical studies show that:in the growth and maturity,ownership concentration is positively correlated with corporate performance,ownership concentration is conducive to the interests of major shareholders and the company’s consistent,and thus have a positive influence on increasing corporate performance.In the start-up,growth and maturity,the three life stages,the proportion of tradable shares showed a positive correlation between corporate performance,and improve the proportion of tradable shares of minority shareholders in favor of restricting large shareholders,and thus the major shareholders in corporate governance Restricting the role play.In the three life stages,chairman and general manager whether a person through the significance test,a negative correlation with corporate performance,reflecting the status of the separation of ownership of IT companies;independent directors are passed significant test with the company Performance irrelevant,IT companies have not yet play a role of independent directors.In three life cycle stages,the proportion of managerial ownership and the number of executive pay and corporate performance were highly positively correlated,suggesting that IT business executives some incentive to improve the company’s overall performance has great role in promoting and facilitating.