The Research on the Correlation between the External Governance of the Small and Medium-Sized Listed Companies and the Corporate Performance
|School||Southwest University of Political Science|
|Keywords||the small and medium-sized board the external governance corporateperformance|
The small and medium-sized enterprises board (The following are all referred to as “thesmall and medium board”) which is established to set up direct financing platform for smalland medium-sized enterprises with industry outstanding, high growth and technologicalcontent and to solve their difficult problems for financing effectively is an important part ofShenzhen motherboard market. As the rapid development of market economy in China, Smalland medium-sized enterprises are more and more important in the national economy andsmall and medium-sized board listed companies are becoming increasingly into the body ofthe attention on the stock market. Since their founding, small and medium-sized board hasmade brilliant achievements through six years of development, meanwhile also has exposedall kinds of problems in the external governance. Thus, there are523small and medium-sizedboard listed companies considering its particularity as the sample in this paper. This paper ison the empirical research for correlation between external governance of small andmedium-sized board listed companies and corporate performance from four dimensions basedon the data in2010, the literature and theory research and the analysis of the developmentincluding current situation of external governance of small and medium-sized board listedcompanies.The result of empirical research in this paper shows that both product competition andtop managers’ turnover have positive correlation to corporate performance in small andmedium-sized board listed companies and the corporate performance of company whose firstbig shareholders is state-owned shares is relatively high. The government intervention and thespecial treatment of CSRC can be a negative impact on corporate performance while theconstraints by perfect system of laws and regulations can improve the management efficiencyand corporate performance.There is negative correlation between the sample company annual audit opinions andROE, but not significant. So is the correlation between the sample company annual audit opinions and Tobin Q value. Information disclosure quality and net assets income rate havesignificantly positive relationship which is the same as that between asset-liability ratio andcorporate performance of small and medium-sized board of the listed companies, that is to say,Claims Governance has a positive effect on corporate performance management. Equityconcentration, the number of the directors and the natural logarithms has the positive effect onROE respectively. In addition to company scale, the rest two variables have not significantcorrelation to ROE.Finally, based on the research conclusion of this paper and the external managementcurrent situation of the small and medium-sized board listed companies, this paper proposessome policy proposals to improve the external governance of the small and medium-sizedboard listed companies: strengthen market leading mechanism construction; perfectgovernment control mechanism construction; accelerate social assistant mechanismconstruction and attach importance to the creditor’s rights financing mechanism construction.