Research On The Correlation Between Corporate Internal Governance And Corporate Value

Along with the rapid development of Chinese securities market, the internal corporate governance issues more and more apparent, increasingly enterprises and theoretical concern. The internal governance level, not only directly affect the operating performance of listed companies, but also a profound impact on the company's market value, but also to the sustainability of the stock market a key factor in the development of healthy and stable, so making more and more scholars have begun to study on the company issues of internal governance. Currently the company for the value of the internal governance of the studies usually focus on only one aspect of internal governance, such as board composition, ownership structure, the proportion of independent directors, managerial compensation, etc., but in general to the internal governance of the company study is relatively small. Based on this, the paper will from equity concentration, between degree of ownership balance, the general meeting of shareholders, directors, supervisors, managers six aspects 13 indicators to measure the internal governance indicators, using canonical correlation analysis method to investigate internal governance of listed companies in China with the corporate value of relevancy.This paper firstly described the dissertation research background and meaning, introducing domestic and foreign companies research situation on the relationship between corporate governance and company value to illustrate the importance of this research.Then this paper introduced the related theory which used in this paper, analyzes the transaction cost theory, the principal-agent theory, information asymmetry theory, the contract can't complete theory, found the theoretical foundation for the following studies.Next is the internal governance of the company's impact on corporate value theory, which put forward hypotheses for subsequent empirical analysis for the selection of suitable and accurate indicators.Followed by empirical analysis of this article. In the first two chapters on the basis of qualitative analysis, on behalf of the company's internal governance indicators were selected as explanatory variables, indicators which reflect the value of the firm be explanatory variables, then using the canonical correlation analysis method for empirical research to investigate the relationship between the internal governance factors and firm value.Finally, the conclusions of this paper, by the empirical results is presented recommendations to improve corporate governance.