A Positive Study On The Relationship Between SME Board Listed Companies' Corporate Governance Structure And Corporate Performance

At the beginning of 1980s, As a category of enterprise management, the corporate governance had appeared. Accompany with the development in economy and the perfection in financial market of our country, the problem of corporate governance is be concerned increasingly by the government organ, the law and the economical circles. As the core of the modern-enterprise system, the perfect corporate governance is not only the important frame of modern-enterprise system but also necessary to strengthen corporate competitiveness and improve operating performance.This paper bases on the study reviews theoretical and empirical literatures on governance factors of financial within and outside China, focus on the SME (Small and Medium-sized Enterprise) Board, which is the most vigorous board in Chinese stock market, The paper selects the companies listed in Shenzhen SME board before the end of 2006 as research samples, makes a deeper study on the relationship between SME board listed companies' corporate governance structure and corporate performance.The paper also sets a comparing sample, which is made up by the listed company chosen from Shanghai stock market. The sample's companies are the same field as the listed company in SME board, and with the similar size .We hope to come to understand the relationship between the corporate governance structure and the corporate performance about the Chinese SME board listed companies aided by the studying of the comparing sample.From the empirical analysis we find: there is correlative between SME board corporate governance structure and corporate performance. the proportion of the top shareholder shareholding, the degree of ownership restriction, the times of board meeting, the proportion of managers shareholding, managers pay and the pluralism of board chairman and CEO have outstanding effects on performance of listed corporation. By comparing study we find that: the company listed in SME board, have stronger profit ability, financing relative difficult, the independent director system is imperfect, the relationship between with managers pay and corporate performance is stronger than the company listed on the main board. At the end of paper, indicates some deficiencies of the SME board listed companies' corporation governance and puts forward corresponding suggestions to improve them, which have significant reference to perfect corporate governance of listed company in China and promote its performance.