Study On The Relationship Between Ownership Structure And Performance Of Listed Firms GEM Board

Young Growth Enterprise Market (GEM) has become an integral part of China’sstock market by virtue of its uniqueness. With the rapid development of the GEM, avariety of corporate governance issues spate in GEM companies which is a seriousthreat to the GEM and the healthy development of China’s capital market.Panel data of sample is form160listed companies in GEM China on2011. First,this paper investigates the GEM listed companies corporate governance characteristicsin order to find crux of the matter. Second，this paper studies on the relationshipbetween corporate governance structure and performance, to provide theoretical andempirical support for the promotion of the growth of GEM.In this paper, empirical research consists of feature analysis of corporategovernance and endogenous regression analysis of the corporate governance andperformance. The investigation finds that the GEM listed companies have high levelof ownership concentration while low level of the tradable shares and so on.Regression analysis has got the main conclusions:(1) There is an insignificantlypositive linear correlation between ownership concentration and ROE.（2）Aninsignificantly positive relationship lies between the proportion of tradable shares andROE.（3）There is a significantly positive linear correlation between the proportion ofcorporate shares and ROE（.4）An insignificantly positive relationship lies between theproportion of state shares and ROE.（5）There is an insignificantly positive linearcorrelation between the proportion of management shares and ROE. Aim to improveperformance, this paper gives following advises（.1）Rational use of index of companyperformance rank is needed when we make analysis between the index.（2）Enhancedthe Philosophy of stock should be long held by shareholders and management.（3）We need do our best to develop the stock ownership incentive mechanism, strengthensupervision and constraintion on stockholders and management.（4）promotion of theproportion of corporate shares is needed through reasonable means，Draw lessonsfrom foreign management mode in order to explore new way.