An Empirical Research On Corporate Governance And Firm Performance Evaluation

In recent years, a series of problems, such as Yingguangsha, Delong, Enron and WorldCom , have caused great harm to the stock market and investors in domestic and international capital markets. Facing the severe reality, theorists,practitioners and the general investors are becoming increasingly aware that corporate governance is an important decisive factor in competition and development of enterprises and as the same time, it is playing a key role for companies in ensuring sustained and healthy growth. In current world, therefore, corporate governance as global hotspot is being given unprecedented attention.From the perspective of corporate governance structure and firm performance, this article has analyzed if good corporate governance is certainly bringing a good performance of the company. One measure of corporate governance was the index by Nankai University, and one measure of company performance indicators was the principal component analysis method. Our task was to get the overall relation between the two. But the empirical results show that it does not exist significant positive correlation between the corporate governance and firm performance. On this basis, I used panel data to get a further analysis results from the companies in 53 companies in 2001-2008, and obtained the relationship between the governance structure of factors and company performance. In the end, according to the empirical results,I Put forward corresponding advices for policy establishment in order to improve corporate governance structure, corporate performance, and enhance their competitiveness.