The Corporate Governance Structure And The Growth Of Listed Companies In China

The development of Chinese capital market is a national strategic task. As the most important micro-management bodies of Chinese socialist market economy, listed companies are the cornerstone of Chinese capital market, and become the backbone which promotes and decides the development of Chinese national economy. However, Chinese listed companies exist various corporate governance problems and block the growth seriously, some even die too early, thus affected the healthy development of Chinese capital market and the national economy! As operating foundation, corporate governance structure plays decisive role in the stable growth of listed companies in China. So the paper chooses a popular topic and has both theoretical and realistic significance.With economics, management and econometrics theory as a guide, the paper uses the research methods of combining theory with practice, normative research and empirical analysis to study systematically and dynamically inner relationship between the corporate governance structure listed companies in China and their growth on the basis of fully grasping theoretical and empirical literature of the corporate governance and enterprise growth, in order to find good corporate governance structure during the transitional period which improves fundamentally overall growth of listed companies in China and put into practice. The author defines the corporate governance structure and firm growth in this paper after reviewing related literatures systematically and establishes a comprehensive evaluation system and model of the growth of listed companies, which having one first-level indicator, four second-level indicators and twelve third-level indicators based on the analysis of principal component and empirically studies the growth.Based on the principal-agent theory and the enterprise growth theory of the resource-ability, the paper theoretically studies internal mechanism of the corporate governance structure and the growth of Chinese listed companies from three dimensions of ownership structure, the board governance and the management incentive. Then we empirically study the relationship between corporate governance structure and the growth of Chinese listed companies, and reach conclusions as following.1. The proportion of state-owned shares is negatively related to the growth but not significant, the proportion of corporate shares is significantly positive related to the growth, the proportion of tradable shares is significantly negative related to the growth; share proportion of the largest shareholder is negatively related to the growth but not significant, share proportion of the top five shareholders is significantly positive related to the growth, and the proportion of the shares of the second to the fifth largest shareholders among the top five shareholders is significantly positive related to the growth. 2. Both the board size and directors' knowledge are significantly positive related to the growth, duality of COB and CEO is positively related to the growth but not significant, the ratio of independent directors is positively related to the growth but not significant, both the board meetings and whether the board consists of professional committees are positively related to the growth but not significant.3. The study on the management incentive finds that the annual salary of management is significantly positive related to the growth, and the share proportion of management is positively related to firm growth but not significant.Finally, this paper provides with some advice which sound and complete corporate governance structure to improve the overall growth of Chinese listed companies. Theoretically the study will make up for the lack of researches on the theme, perfect and develop governance theory and the growth theory. Practically it will help provide guidance to establish good corporate governance structure and promote the growth of Chinese listed companies.