The Empirical Study Of Correlation Between Corporate Governance And Corporate Value

Corporate governance, as a solution to the separation of ownership and control of the institutional arrangements, was concerned by all of countries in the world. The establishment of effective corporate governance is a modern market economy system, orderly and efficient operation of the foundation and development of the system of a company that is to maximize value for listed companies to participate in the market and balance the interests of all parties an important mechanism. Absorption and abroad by introducing corporate governance theory, and drawing on the outstanding research achievements at home and abroad, through empirical studies of selected corporate performance (or value) with a significant impact on the factors is undoubtedly of great significance.This paper first detailed and comprehensive review and summary of the theory and previous research results, clearly the major corporate governance-related variables, from the ownership structure (primarily internal equity and equity restriction), executive pay, the system of independent directors more detailed perspective on the business value of corporate governance implications. Then, in 2006 on the basis of the Shanghai stock market the domestic A-share listed companies in the manufacturing sector data on corporate governance and the relationship between the values of a study. Study found that, by Tobin Q as a corporate value targets, the first and largest shareholder and equity restriction have the impact of relatively significant, the independent directors of the Board and the Board of Control of the unity of the two companies did not value significant impact. But executives have an incentive mechanism and enterprise value was a significant positive correlation between.As the past on corporate governance and corporate value of the relationship between the majority concentrated in the corporate governance of a particular aspect of the enterprise value of the impact, direct and comprehensive study on the relationship of the two less, this study will reveal the current China's Listed Companies on the issue of governance exists for the establishment of a Chinese characteristics and provide the basis for corporate governance system.