Corporate Governance Structure,Corporate Performance And Efficiency Of Stock Market

Corporate governance structure is the synthesis of all contracts in the firm coordinating internal factor owners and external interest groups, and the economic relationship of mutually coordinating, constraining and motivating by the internal institutions and the external contracts. Corporate performance is the maximum utilization extent of corporate internal and external resources; also the assessment standard of the efficiency of corporate governance structure. The goal of efficient corporate governance is to ensure the maximum interests of each corporate factor in the long-run game. The efficiency of stock market includes the pricing efficiency, transactional efficiency, informational efficiency and capital-allocation efficiency within the market and external efficiency outside the market. The internal efficiency is the foundation of the external efficiency and the external efficiency is the final scenario of the internal efficiency determining the efficient allocation of financial resource. At the meanwhile, the allocation capability of external resource of the stock market is organic unification of corporate performance, internal efficiency and external efficiency.The relationship of the corporate governance structure, corporate performance and efficiency of stock market can be researched by three aspects: the equity structure, capital structure and the principal-agent relationship. Corporate performance and the efficiency of stock market have a close connection of mutual influence, mutual cause and effect. They both determine the impact capability that the virtual economy of stock exchange offers to industrial economic performance and total social welfare. In external management system of corporate governance structure, M&A play an important role in improving corporate performance. We have found, through the researches of American acquisition cases, that the estimated variance of stock pricing in stock market is the key reason of M&A. M&A contributes to optimizing corporate governance structure, improving corporate performance of listed companies and enhancing internal and external efficiency of stock market.Effective corporate governance structure is the foundation of corporate performance. Definite boundaries of property rights and effective execution of contracts are the premises and indemnity of effectiveness of corporate governance structure. If they both could not have the protection of juridical rules and the superintendence of government, the corporate performance would be certainly poor. Accordingly, the efficiency of stock market is difficult to be improved.Chinese market exchange assumes the prevalent characteristics of grouting and transitional market, and also specifically historical defects resulting from Chinese plan economy. Especially the equity split mechanism distorts the resource-allocating function of Chinese stock market, and initiates uncoordinated conflicts among big shareholders and small shareholders, shareholders and stakeholders. Therefore investors bear not only the high market risk and operation risk but also the high policy risk and the violation risk of property rights.Applying the theories of corporate governance structure, corporate performance and efficiency of stock market to analyze China's cases, we found that the transactional efficiency of Chinese stock market is internationally advanced. But its pricing efficiency, informational efficiency, capital-allocation efficiency, external efficiency and corporate performance are poor. The wealth effect of stock market and its impact to marcoeconomy are not influential. Hereby the systematic risk of Chinese stock market is very high and its contribution to Chinese economic growth is relatively limited.The result of the protection of property rights in China is the premises of the improvement of performance of listed corporations and efficiency of stock market. The reform policies of standardizing Chinese stock market should be reached from property rights protection, namely how to enhance the corporate perfo...