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An Empirical Study Of Chinese Listed Companies Governance

Posted on:2006-11-09Degree:MasterType:Thesis
Country:ChinaCandidate:C C QinFull Text:PDF
GTID:2206360152988101Subject:Quantitative Economics
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With China's demanding for modem corporate system, since the 1990's, the proposition of 'corporate governance' have come into our sight. The western theories and mutual models on corporate governance are coming to be doctrines some domestic scholars borrowing from the western, that regard separation between ownership and management as the primary. However, many facts have proved that the separation and highly dispersed stock-ownership are not common, thus the start-point of traditional research on corporate governance should be reconsidered logically, which means the traditional governance theory based on highly dispersed stock-ownership may not be used to China's companies' governance reality. The dispersed stock-ownership should not be the target of ownership arrangement making the China's corporate governance effective. China's listed companies should have their own personalized governance model.This paper tests the relevance between governance factors in some of listed companies and the companies' performance in an empirical way. Firstly, main components analysis is applied to get the comprehensive scores to measure companies' performance through financial data of the listed companies in 2003. The scores are the variables of regression next step. The features and size of the stock-ownership as independent variables are utilized to build up regression model in order to observe how the characteristics of stock ownership impact the performance of the companies in various sectors and the whole as well.The empirical results indicate that sector differences do exist in stock-ownership structures because of the government's different macro-policies in different sectors according to sector features, which results in the different impacts of the stock-ownership variables in various sectors. The finding means that companies in different sectors should have different governance realities that shouldbe under a kind of 'characterized governance in line with the stock-ownership structure differentiated by the different macro industry-policies. The text made some progressive findings as the following:1. The method of main component analysis is applied to measure the comprehensive performance within the framework of the current financial indicators. The method of variable analysis is more objective than the utility-coefficient methods, because the method of variable analysis is based on actual results of indictors and the power is calculated from the actual results by statistic means. Furthermore, the system of financial indicators where the method of variable analysis is applied involves profitability, managing ability, growth ability, and capital structure and debt paying-off that many researches ignored, which completely reflect both the short term and the long term contributions made by the governance variable of various companies.2. This text puts forward the concept of "stock-ownership governance variable" for the first time.The ownership structure is the important factor that determines the governance efficiencies. We define the concept of "stock-ownership governance variable" that is referred to the state-owned stock, circulating stock , holding shareholder and the difference of the first , second shareholder, according to the reality of the Chinese company.3. The-characterized governance of companies in different sector is recognized for the first time.Companies in different sectors should have different governance realities that should be under a kind of characterized governance in line with the stock-ownership structure differentiated by the different macro industry-policies.The paper is divided into four chapters of which both content and structure have a very close connection. Chapter 1, introduction; Chapter 2,reviewed the reality of the corporate governance in the country, and the research questions are stated inthe chapter as well. In Chapter 3, the empirical analysis is conducted on the relevance between stock-ownership governance variables and the comprehensive performance of the selected compani...
Keywords/Search Tags:Corporate governance, Stock-ownership governance variable, Main components analysis, Comprehensive performance
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