Study Of Corporate Governance Based On Enterprise Life Cycle

With the growing of domestic capital market, enterprises and investors pay moreattention to the corporate governance. Setting up a corporate governance mechanismand run it well will promote the development of company, consummating the systemof capital market, and making the national economy run steadily. Since the financialcrisis happened in2008, enterprises face with the huge change of externalenvironment and the increase of uncertainty, whether can they strengthen themselvesto reply the change of environment has became the focus of investors, so the investorsput forward higher request to corporate governance. According to the differentenvironment of internal and external, this article imputes the different corporategovernance to different stage of enterprise life cycle. So study the diversity ofcorporate governance mechanism in different life cycle stage and the effect ofcorporate governance on performance can help company find the appropriategovernance mechanism so that promote the development of company.First, this article states relevant theory, especially explaining the compose ofcorporate governance mechanism and the ways to divide the enterprise life cycle.Selecting the dates from2007to2011of domestic public company for studying,using the stable method of cash flow to divide the stage of life cycle into growth stage,mature stage and decline stage. On the select of indexes about performance, thisarticle choose the total operating income for dependent variable, using the analysis ofchart, quarterback and regression to study the feature of equity structure, board ofdirectors, executive incentive, external market supervision, as well as the effect tocorporate performance. After the study, we found the following conclusions: Allstages have the high ownership concentration and positively related to performance,the feature of “A dominant” is obvious; chairman and president whether or not oneperson is negatively related to performance in all the stages, reflecting the pursuit ofhigh internal control; The proportion of independent director is not significant withperformance in all stages, this is the reflection of “formalize” to the set ofindependent directors and the role of independent director has not appeared; Thenumber of equity holding in executives is positively related to performance but not sostable in growth stage, and is not notable in mature stage and decline stage, whichrely on the feature of different stages and the situation of law and regulation; Whetherlisted in H capital market meanwhile is positively related to performance in growthstage and mature stage but negative in decline stage.