The Study Of Family Business Relationship Between Corporate Governance And Corporate Performance

With the continuous development of market economy and the deepening of globalization, there is no doubt that every company must face the competition and development. Then, to strengthen corporate governance and to improve corporate performance are the targets of every company and also become a hot topic now. With the development of market economy, in fact family enterprises in our country have improved their stage of competency through innovation. Enterprises which have less competency will eventually be eliminated. The study of family enterprises relationship between corporate governance and corporate performance is significant; meet the business environment of our enterprises. The constructive comments proposed through the analysis of the relationship between the two are propitious to the development and progress of our family enterprises, improve their corporate governance structure and value of them, and enhance their competency in the current market.In this paper, firstly, we impose factor analysis on the family enterprises corporate governance variables to get a common factor of the comprehensive corporate governance; secondly, we also impose factor analysis on business performance variable, according to features of it, to obtain performance's common factor; Finally, we analyze the company comprehensive integrated management and performance factors by multi-factor regression.Through research and analysis of the relationship between family enterprises, we find many fields have a significant impact on the corporate performance, which contain pay factor, ownership factor, proportion of directors and supervisors holding the stake, the scale structure factor of the board of supervisors, the number of shareholders and shareholder representatives present at the Annual General Meeting; we also find other fields have no significant effect on the corporate performance, which are board's scale structure factor, high-level's share ratio, the number of meetings, the number of General Manager's holdings, the relationship of the actual controller and board chairman or general manager, chairman and General Manager holding in one factor and the number of supervisory chairman's holdings. The comparison of the current state of family enterprises with the result in this paper demonstrates that the results of this paper consistent with current practice.Finally, with the actual findings and analysis in this paper, the results of the research on family enterprises governance put forward some suggestions: on the one hand, it takes advantage of factors which play a significant role in the company's performance; on the other hand, we fully understand the current inadequacies of family enterprises.