Empirical Study On The Relationship Between Governance Structure And Business Performance Of Listed Agricultural Company

In recent years, China taked a series measures to reform public company governance structure, such as developed and introduced the"Corporate Governance Guidelines", carried out state share sale reform, improved the system of independent directors, hoped to improve the performance of listed company and enhance the listed company's market competitiveness and sustainable development capacity through the improvement of corporate governance, Listed agricultural company as the representative of China's first industry, as a link of promote agricultural industrialization and as an important carrier of capital operation in capital markets, the healthy growth of it bearing the smooth solution of the three agricultural problems and the sound development of national economy. There are many defects and deficiencies in the current governance structure of listed agriclutural company in China and these will eventually hinder the improvement of business performance in listed agricultural company. In this paper, study listed agricultural company, try through the analysis of the relationship between corporate governance and performance in the hope of finding measures to ferfect governance structure of listed agricultural company, in order to improve performance of listed agricultural company.In order to avoid the deficiencies of use a single financial indicators to measure business performance, this paper used factor analysis to get the comprehensive performance of listed agricultural company. Better deal with the original 14 performance indicators. These performance indicators are all capital earnings rate, net assets income ratio, earnings per share, asset-liability ratio, liquidity ratio, quick ratio, turnover of total assets, inventory turnover, receivables turnover, main business profit margin, main business income growth rate, total assets growth rate, asset growth rate and net assets per share. Eventually extract six independent factors. These six factors included almost entirely information carried by original 14 performance indicators. And then according to variance contribution of different factors, which is the proportion of the total amount of information of all original performance indicators brings by different factors, to weighted summary to get integrated performance of listed agricultural companies.According to the business performance value of listed agricultural companies, this paper used linear regression method to study the relationship between corporate governance structure and operating performance. Using multiple linear regression model to obtain the correlation of corporate governance of listed agricultural companies and operating performance. The results showed that the largest shareholder's ownership percentage was positively correlated with performance in listed agriclutural company, the proportion of outstanding shares, whether state-owned listed companies and Z values were negatively correlated with business performance, board size was positively correlated with performance, the proportion of independent directors and two part-time job were negatively correlated with business performance, senior managers receive annual compensation and shares held were positively correlated with performance. Among them, the proportion of outstanding shares, whether state-owned listed companies, board size and proportion of independent directors had no significant correlation with operating performance. This study suggested that listed agricultural company should improve governance structure to improve performance from the following three aspects: foster institutional investors and reinforce external corporate governance, improve and perfect the independent director system, establish and improve the management incentive system.