Research On Governance Of Listed Companies In China After The Nontradable Shares Reform

Since the mid-90s of the 20th century, corporate governance problems are gradually getting more attention. In particular, the 1997's Asian financial crisis, the Enron Corporation and WorldCom scandals in 2001. And the recent subprime mortgage crisis led to a number of financial companies the U.S. the closure of weak internal control All of these make corporate governance re-entered the academic study of the important areas of the economy, but also in relationship to the company's survival and development of the core elements. Into the 21st century, the status of corporate governance in China has changed considerably. After nontradable shares reform in 2006, China's listed companies have established the basic norms of corporate governance relative. However, our board of directors corporate governance functions of the border is still unclear, diversification is inadequate, professional committee is not professional; merger and reorganization and disclosure are irregular; equity incentive problems, and many other issues is necessary to promote. This paper attempts to use economic principles and evidence to solve these problems thinking the current situation of Corporate Governance in China during the transition period.Article starts of four factors, the board of directors, mergers and acquisitions, information disclosure and equity incentive, combinating relevant cases, setting China Shenzhen A-share listed companies Governance plate as samples. Analysis shareholders, board size, independent director ratio, frequency of board meetings and other elements of a number of governance impact on corporate performance ROE. Get conclusions of independent director and firm performance is related, ownership structure and board meeting frequency are inversely related to firm performance, however, board size is no significant effect on the performance of companies. Finally, get several proposals to further improve our corporate governance in the future. From the perspective of theoretical innovation, the domestic corporate governance literature is very much, but most focused on due to the dominance of state-owned shares of major shareholders control the board of directors created, internal control and other issues left over by history. But with the share reform is completed, and the laws and regulations and market supervision get improved, these problems are being solved step by step. In contrast, Problems in the micro level of corporate governance, such as board diversity construction, mergers and acquisitions, equity incentive, information disclosure, are not solved. Article seeks to achieve a breakthrough in this area. As far as research methods in terms of innovation, the article using the latest data, case, combined with sophisticated empirical methods demonstrate the emergence of new issues listed companies are relatively more convincing.