An Empirical Research Of Strategy Committee On Corporate Growth Base On China Listed Companies

The development of China’s capital market is one of the tasks of China’s national strategy,the listed company as the most important micro-economic subjects of socialist marketeconomy with Chinese characteristics, have become the backbone of promoting anddetermining economic growth rate and level. In recent years, however, under the environmentof China’s rapid economic development, China’s listed companies are often severely limiteddue to various governance issues and hinder their growth, or even aborted, premature stage ofhistory, these have affected to China’s capital market as well as healthy and stabledevelopment of national economy! Good corporate governance structure as the basis for theeffective operation of listed companies, playing a decisive role on the sustained, steady andhealthy development of listed companies, also having an important impact on the growth oflisted companies. The board of directors as the listed company decision-makers, corporategrowth is one of his duties. Strategy Committee is a professional committee under the Boardof listed companies, its primary duty is to research the company’s long-term developmentstrategy and major investment decisions and make recommendations. Strategic committeesystem of listed companies is established from the perspective of the research andrecommendations of the long-term development strategy and investment decisions, theestablishment of the Strategy Committee as part of corporate governance structure, itsfunctions are effectively manifested, will have an impact on corporate growth-related issues.Therefore, this paper chose Strategy Committee and growth as a research project. It has theurgency of times and importance of theoretical and practical significance on theestablishment of listed companies Strategy Committee with Chinese characteristics, andimproving the overall growth of China’s listed companies.This paper chose the relationship between Strategy Committee governancecharacteristics of the Board of listed companies and growth of listed companies as a researchobject, using the research methods with a combination of theory and practice, research andempirical analysis, based on the theory of Economics, Management, Corporate Governance,Empirical Accounting and Econometric theory, and then analyzing the intrinsic interactionbetween the Strategy Committee characteristics and corporate growth. The followingassumptions：Under the same conditions. Under the same conditions, the larger the Strategy Committee size, the better it’s growth; the longer the average tenure of members of theStrategic Committee, the better it’s growth; the greater the proportion of independentdirectors in Strategy Committee, the better it’s growth; the company which it’s chairman incharge of Strategy Committee grows much better than the one not; the older the average ageof Strategic Committee members, the better it’s growth; the higher the average educationlevel of Strategy Committee members, the better it’s growthThe test results show that the scale of the Strategy Committee, the average education level ofStrategy Committee members have a significant positive impact on corporate growth;whether the chairman in charge of the Strategy Committee have a significant negative impacton corporate growth; and then the time Strategy Committee have established, the averagetenure of members, the average age and the proportion of independent directors in StrategyCommittee do not have a significant relation with corporate growth.