Research On The Relations Between Main Features Of Corporate Governance And Business Growth

Corporate governance is inevitable to the modern enterprise if good performance is made. To the modern enterprises, the corporate governance main feature and their performance is a prerequisite role as well as an important guarantee for the growth of an enterprise.Papers selected 384 listed A-share companies of breweries food, electrical and commercial chain of three industries that stocks on China's Shanghai and Shenzhen from January 1, 2004 to December 31, 2006 as research samples, using panel data. The paper made the empirical analysis between the shareholders characteristics and business growth as well as the characteristics of the board of directors and managers inspire. In this paper, internal growth rate and main business revenue growth are selected as an alternative indicator of business growth, and OLS analysis of the basic econometric model is used.The research findings show: the nature of equity has a certain impact on the growth of an enterprise. When the nature of equity is state-owned, enterprises grow better, but not obvious; equity concentration is negatively correlated with business growth; It was a negative correlation between equity balances and corporate growth; the scale of the board of directors is correlated negatively with corporate growth; the independence of the board of directors and business growth are positive related, but statistically not significant; the board leadership structure has no significant impact on the growth of an enterprise; it has relations but not obvious between business incentives that is used with the sum of their executives and business growth. The results show that in our country at this stage the equity ownership structure can influence business growth more than the nature of equity. China's special conditions under the dominance of state-owned shares indeed affected the growth of an enterprise; the scale and the independence of the board of directors have more effect on the growth of an enterprise than leadership structure; the remuneration of senior management have limited impact on incentives of business growth. Therefore, the structure and mechanism are the two major obstacles to impact the growth of China's listed companies.In light of these conclusions, the paper listed suggestions as follows: take an optimization options to equity structure, weaken nature of equity, control the size of the board of directors, and improve the system of independent directors, separate chairman and general manager appropriately, as well as strengthen incentive and restraint mechanisms of the senior management, and so on and so much.