Study On Corporate Governance And Corporate Performance Of Listed Companies In Zhejiang Province

In the past ten years, a series of events, which happened in Asia and America, made people pay more attention to the problem of corporate governance. Asian financial crisis did a lot of damage to the economy of many countries in 1997, and the defect of these countries' corporate governance deteriorated the crisis. Especially after the events happened in Enron and WorldCom in 2001 shocked the world, corporate governance became the focus of the world. Now China is in a process of transferring its system of economy and facing the economic globalization in the meantime, to perfect its corporation governance is a rough task.As a part of listed companies in China, the ones in Zhejiang province shared some common characteristics with others, and have their own characteristics as well. Benefiting from the good performance of district economy of Zhejiang province, the listed companies in Zhejiang province as a whole have a good performance. What we concern is the relation between corporate governance and corporate performance of those listed companies in Zhejiang province. We hope what we have done will provide something useful for the study of corporate governance in China.Corporate governance of Zhejiang province is studied in this paper. The first part is a summary of the concept, basic theory of corporate governance and the theory of relation between corporate governance and corporate performance based on previousoversea and domestic scholars' study. Then the paper gives an analysis of the current level and characteristics of listed companies in Zhejiang, based on which we evaluate the comprehensive corporate performance through the method of factor analysis. After this the corporate governance situation of listed companies in Zhejiang is analyzed in detail from three important aspects of corporate governance, namely, board of directors, ownership structure, and manager incentives. Where after, a model of multivariate linear regression with comprehensive corporate performance is set up, with eight variables. The empirical study comes to the conclusion that the corporate governance is closely related to the corporate performance of listed companies in Zhejiang. Among the eight variables describing the corporate governance, TOPI, C25, MI and MH play a relatively important role. In the end, aimed at the existing problems, some proposals are provided to improve the corporate governance of Zhejiang listed companies.