A Study On The Relation Between Corporate Governance And Performance Of Sport Industry Companies

The development of sports industry is the only way from the big sports country to the sports power.In 2014,after the State Council issued "some opinions on accelerating the development of sports industry to promote sports consumption ",the process of sports marketization was accelerated,the social capital rushed to the sports industry,and the number of sports enterprises increased rapidly.The competition of sports products market is intensified,so that the development opportunities and challenges of sports enterprises coexist.Corporate governance is the core of modern enterprise system operation,good corporate governance can not only reduce agency costs,but also helps scientific decision-making and improves performance.It has an important role to promote the healthy development of sports market subject and accelerate the development of sports industry by strengthening the research of sports corporate governance.Based on the particularity of the sports industry and 53 companies which mainly businessed sports industry sports activities on 2007-2016 from the NEEQ,Shenzhen Shanghai and Hong Kong Stock Exchange,this paper researched on the internal governance of sports company and its relationship with performance by the research methods of theoretical research and empirical analysis,comparative analysis and comprehensive research with the unbalanced panel data of 242 observation analysis.The research's theories were principal-agent,resource dependence and stakeholders of corporate governance and other related theories.The purpose of this study was to provide reference for sports companies to improve the quality of corporate governance,create a good credit and high transparency and accountability of the sports industry environment,obtain long-term investment and business integrity the social capital,and support the more powerful sports industry value and social value.The research ideas and framework followed the research paradigm from normative to empirical.After the introduction,the paper summarized the related theories of corporate governance and the research results.The study found that corporate governance had an important impact on corporate performance,and the current research results had went deep into the specific industries such as banks and agriculture,but it was less in the sports industry.The object and content of this paper further expanded the research category of sports corporate governance.The main body of the paper studied the particularity of sports industry in China,the development of sports company in the securities market,the characteristics of internal governance structure and its relationship with corporate performance.The main findings included four aspects:(1)The particularities of sports industry in terms of marketization,industrial status and specialization of operation required that sports companies should improve corporate governance structure and mechanism as soon as possible,and enhance corporate governance level.(2)The overall level of sports company performance in the NEEQ,Shenzhen Shanghai and Hong Kong stock markets was not high,the companies were facing greater pressure.The total size of the NEEQ sports companies was in minimum,and its profitability was the lowest,but the plate in the sports industry categories was most widely.Business activities of individual sports industry were specific categories.The total size of Shenzhen and Shanghai exchanges sports companies was smaller.Its profitability was relatively strong,business categories of individual sports industry were widely.The total size of the Hongkong Stock Exchange listed sports companies was the largest and most profitable,business categories of individual sports industry mainly engaged in sports goods and sales.(3)The internal governance structure of sports companies in different securities market was prominent.First,the corporate governance structures ware different.The general selection modes of sports companies in the NEEQ,Shenzhen and Shanghai exchanges,HKEX were double system,mixed system and single layer governance mode.Second,the sample overall internal governance characteristics were significant.The ownership structure was relatively concentrated,the balance of ownership was weak,the situation of"being the only big share" was more serious,and the nature of controlling shareholder had two forms of natural person and legal person.The governance characteristics of board of directors were the smaller board size,the prominent leadership structure of CEO duality,and the incomplete construction of the special committee and the independent director system.The governance characteristics of senior management were mainly manifested as imperfect incentive mechanism,prominent characteristics of executives' heterogeneity,and lack of professional sports education of general manager.(4)Corporate governance had an important impact on the performance of sports companies.The study of total sample was as follows.1)The ownership nature of the first largest shareholder had the most significant impact on the performance of sports company.There was no significant nonlinear relationship between ownership concentration,equity balance and performance of sports companies.The average performance of the natural person holding sports company was significantly lower than the performance average of corporate holding company.2)There was a significant inverted"U" relationship between the number of board meetings and corporate performance.The leadership structure of CEO separates from chairman of dir-ectors and the independent director system had positive effects on corporate performance.The number of board meetings should be controlled in a certain range.3)Equity incentive plan,CEO's shareholding quantity,incentive ways and gender,education level and work experience all had significant impacts on sports company performance,but equity incentive plan did not play a positive impact on performance.The general manager of young,sports related educational background and sports management experience had positive impacts on the performance of sports companies.4)For the control variables,the corporate scale had significant impact on corporate performance,the year had an important impact on performance.The ratio of assets and liabilities and the form of sports industry had little influence on the performance of the company.In addition,there were some differences in the results of internal governance effect on corporate performance between the NEEQ and Shenzhen Hong Kong Stock Exchange sports company.5)The endogeneity test results showed that the problem of endogeneity were not serious about ownership concentration,board size and general manager shareholding.Finally,according to the above results,this paper put forward some strategies to improve the performance of sports company based on the perspective of internal governance:optimizing ownership structure to improve the governance level;improving the board structure and behavior to build efficient board of directors;improving the senior management mechanism to strengthen the effectiveness of senior management.Suggestions:strengthening the role of government in sports corporate economic governance;implementing governance innovation of sports company;strengthening supervision of the social sports organization to corporate governance;setting up the concept of governance based on value creation;actively playing the role of the stock exchange on sports corporate governance;strengthening the construction of the NEEQ sports corporate governance system etc.The innovations of this paper were mainly reflected in the following three points.First,the particularities of sports industry marketization,industry status and industry management activity were studied,their special requirements for the governance of sports companies were analyzed,the theoretical analysis system of sports corporate governance in China was further improved.Second,it provided direct evidence for the main body of sports market in China to improve corporate governance quality by applying the corporate governance theory to the sports industry and researching the status and characteristics of internal governance of sports companies.Third,using the sample panel data of sports companies for the first time,this paper empirically studied the impact of internal governance on performance,and revealed the impact of corporate governance on sports company performance.The variable selection took into account the particularity of the sports industry management activities,and investigated the influence of CEO's sports education background and sports management experience,the sports industry status on the company performance.Compared with the previous research on sports industry company,this paper had strong innovation in the research object,research method,research content and research conclusion.Of course,the research also had some limitations.Such as the number of samples was small limited by the current status of the development of sports companies in the stock market.The variable selection needed to be further improved,the research object was limited to the NEEQ,Shenzhen Shanghai and Hong Kong Stock Exchange sports companies,not included other non-securities market sports enterprises.In addition,the corporate governance theory knowledge and governance elements needed to be further expanded.In this regard,with the rapid development of sports industry in China,sports enterprises are increasing,in the future time,the author will continue to study the governance of sports companies and effort to solve the inadequacies of this paper,so that the research of sports corporate governance is more in-depth.