An Empirical Study On The Relationship Between Corporate Governance And Performance For Family Holding Listed Companies

Family enterprises have been playing a significant role in the world economy.In China,the private enterprises listed companies have amonnted to 201 by May 31, 2003,90%of which are family holding listed companies.But,the scholars studying family holding listed company are very few,also the researches used the data of 2001, which is obsolete,and samples are small and not convincing.When studying the relationship between corporate governance of listed company and performance, scholars home and abroad attach more importance to the relationship between ownership structure and company performance,especially between ownership concentration and company performance,and they don't draw the same conclusions. Corporate governance of family holding listed company in our country is not perfect, but corporate governance has a notable impact on company performance.The ignorance of improving corporate governance of family holding listed company in China will seriously affect its long-term healthy development and the enhancement of core competence.Based on this,the article will study the relationship between corporate governance and performance in the hope of making pieces of appropriate advice.On the base of reviewing the empirical research on the relationship between the corporate governance and company performance home and abroad,the article studies the relationship between the corporate governance of family holding listed company and company performance,using statistical description analysis and hypothesis testing analysis.109 Family holding listed companies are selected as the sample,and main business service profit margin(MBSPM) is chosen as company performance variable.Corporate governance is characterized by ten attributes,which are S1,S5,S10,FS,BD,IND,BS,T,D3 and M3.Meanwhile,size of enterprise(SIZE) and debt-to-asset ratio(DTAR) are chosen as the control variables.The results indicate that S1,BS are significantly and negatively related to the company performance,FS,IND,T,D3 and M3 are significantly and positively related to the company performance,while the coefficients for the other independent variables are insignificant.Based on the empirical evidences,this article provides some advice on improving Chinese family holding listed companies' performance.At the end of the article,it points out the drawbacks in the study and makes a summary.