An Empirical Research On Corporate Governance And Firm Performance Evaluation

Corporate governance has been the cornerstone of the development of securities market. Good corporate governance is the basis of listed companies to exist on the stock market. Based studies have shown that investors are willing to pay a premium for listed companies which have the high level of good corporate governance.However, what is the efficiency of corporate governance has been no uniform answer. The research on corporate governance is also very rich and diverse. Someone made the corporate governance to index rating; someone made research from the own ship structure, management incentives, and board structure and governance aspects of external research. This choice of our perspective is the right of residual control and residual claim allocation structure. This is the perspective of power and benefits to measure the corporate governance efficiency. This paper argues that the efficiency of corporate governance should have two meanings: First, residual control rights and residual claims must match each other; second, it must be seen from the results of operations or the market value.In this perspective, the paper selected, including the proportion of executive directors, chairman and general manager of the two level-one status, ownership and management right of the average pay and other two variables. And we developed the performance indicators on the basis of the accounting profit evaluation to construct a new measure of performance of corporate governance - Corporate Governance Surplus (CGS). On the basis of this indicator we selected form listed companies pharmaceutical of manufacturing as a sample, and then we will make a correlation analysis with a different configuration of control and residual claims of the situation. In addition, we make the same correlation with the other measure of the market value -Tobin's Q. Analysis methods include the overall analysis, group comparisons and regression analysis.Finally, we gave a summary of the limitations for the conclusions of this study, including sample selection, data processing and the construction of indicators. Meanwhile, the next work in the future includes expanding the sample and extending the time span of the industry sources. In addition, we proposed a new perspective - Tax management on the study of corporate governance based in the traditional performance measurement indicators. Then we summarized the limitations in the study of corporate governance.