Research On The Relationship Of Corporate Governance And Corporate Performance

Global economy is experiencing a radical regulation, so is the corporate governance system in China. During the whole regulation there appears a lot of problems in transformation .The typical reflection of the problems lies in the unsatisfactory performance of state-owned enterprises. The research on the relationship of corporate governance and corporate performance is significant to analyze and change the corporate governance mechanism and solve the problems in transformation. In addition, the research on corporate governance was started rather late in our country and there are not so many thoroughly and systematically research on the relationship of corporate governance and corporate performance elaborated literatures on this subject till now, Hence it is important both in theory and in practice to research on the relationship of corporate governance and corporate performance.Firstly, beginning with the theoretic sources of relationship of corporate governance with corporate performance, we trace back to its course of development.Then a theoretic system is established about the relationship of corporate governance and corporate performance and the institutional nature of corporate governance is clarified. This paper then discusses the relationship of corporate governance and corporate management by institutional economic science, so a whole system of corporate governance is established. At last drawing support from MATLAB language to program we exert gray-relating theory to compute quantitatively gray relational grade of corporate governance and corporate performance and to analyze advantage and then to obtain conclusion of relation.