A Study On The Relationship Between Corporate Governance Of Public Family Firms In China And Their Performance

With the development of globalization and the theory on ownership right, corporate governance has become one of the most important content of corporate theory. The core of the corporate governance is to ensure scientific decision-making and improve its performance. Corporate performance is the most effective and direct reflection to measure whether the corporate governance be healthy or not. High level of corporate governance is necessarily related with favorable corporate performance and the ability of sustainable development. So effective corporate governance is the essential condition to improve corporate performance. However, by summarizing the domestic and foreign literature, few scholars take the special samples of public family firms to do the research related to corporate governance.By comparing between public family firms and the common public firms, there are differences in many aspects, such as business environment and the ownership structure. Does a board structure really have an influence function to the firm performance? Scholars and business management organizations in many countries have always continually focused it in many countries, but they have not considered public family on the relationship in forefathers' researches. So, this paper regard listed public family firms as the research object, investigate the relationship of the board structure and firm achievements, it has important theorial and realistic meanings.This article use the sample of 110 family firms in Shenzhen Stock Exchange and Shanghai Stock Exchange which went public before December 31st of 2005 and shows the relationship between the corporate structure and firm performance through research, that including the size of board, the proportion of independent directors duality of CEO and Chairman and firm performance.The outcome indicates that (1)the relation between family shareholders proportion and corporate performance presents Shape U. (2)The relation between proportion of family directors and corporate performance presents converse Shape U. (3)The Scale of boards presents the converse Shape U relation with the performance. From the results, we find (4)there is no notable relation between the biggest two to five shareholders'proportion and corporate performance. (5)Neither is the circulating shares (6)nor is the proportion of independent directors. (7)It presents no notable relation between duality of CEO and Chairman and performance.