Gem Listed Company Governance Structure Research Relationship With Growth

With the economic development of the world, the companies have become the important subjects to promote the economic growth and development, so it is necessary for the economy of the world to develop the companies. Good corporate governance promotes the development of the companies. It is one of the important requirements for the promotion of companies’ competitiveness there is sound corporate governance structure. It is necessary for the researchers to study the present situation of Chinese companies listed on GEM and how the corporate governance structure is to improve the growth of the companies. Therefore, there are the theoretical and practical significance to study the relationship of the corporate governance structure of Chinese companies listed on GEM and the growth of the companies.We analyze comprehensively the studies about the factors of the growth of companies, evaluation of growth of companies and the studies about the relationship of corporate governance and growth of companies listed on GEM of the domestic and foreign researchers by use of the analysis normatively. On the basis of corporate governance theory and corporate growth theory, we select the principal-agent theory to study the relationship between the corporate governance structure of Chinese companies listed on GEM and the growth of the companies.The indicators of growth will influence the empirical study of the relationship of the corporate governance structure of Chinese companies listed on GEM and the growth of the companies. To measure the efficiency of corporate governance, we comprehensively and objectively evaluate the growth of companies. Therefore, based on analysis of researches existed. We construct the index system characterized by companies listed on GEM, and comprehensively evaluate the index system by principal component analysis. The results measure the efficiency of corporate governance.Then we empirically study the relationship between the corporate governance structure of Chinese companies listed on GEM and the growth of the companies from four dimensions of share structure, board of directors, management and board of supervisors. The conclusions are as following.In share structure, the proportion of the largest shareholder negative relates to the growth; the sum of top five shareholders ratios weakly negative relates to the growth; the sum of top five shareholders ratios except the largest one weakly positive relates to the growth; the nature of the largest shareholder and the ratios owned by the states don’t relate to the growth. In board of directors, the quality of board of directors positive relates to the growth; independent directors’ ratios weakly negative relate to the growth; the family members ratios weakly positive relate to the growth; the scale of the board and the integration of power from directors and managers have no effect on the growth. In management, the annual pay of managers positive relates to the growth; the quality of managers and the share of managers weakly positively relate to the growth. In the board of supervisors, the external supervisors’ ratios and the number of meetings positive relate to the growth; the scale of board of supervisors doesn’t relate to the growth; the results are basically consistent with the problems in Chinese companies listed on GEM. Finally, we provide with advice from four dimensions of share structure, board of directors, management and board of supervisors.