Research On The Influencing Factors Of Governance Performance Of Shandong Province Listed Companies

Corporate governance is the most fundamental system security of economic growth, good corporate governance is positive in promoting the economic growth. The listed companies in China reached2352, and237in Shandong province by2012. Listed companies has becomes the key strength for promoting the economic growth of Shandong province.It has important meaning for the system analyses the status of governance structure,revealing the problems, exploring the influencing factors on governance performance,as well as seeking the measures to perfect the governance structure, improve the governance behavior and increase the governance performance of Shandong province listed companies.Adopting the normative and empirical research, as the sample of2003-2012of Shandong province listed companies, this paper has found as the following:1. The equity structure of listed companies in Shandong province are centralized, ownership structure is less diversified. There exists super control of shareholders and over balanced among major shareholders in some companies. Major shareholders control the general meeting is obvious. Fierce competition among major shareholders is exist in some companies. Board system construction has significantly improved as general, the pay of directors and executive, the allowances of independent directors show an rigid growth trend. There is a certain sensitivity between the pay of director, executive and governance performance. Board operation is in a good condition. Some listed companies did not meet the board system regulations need. Most of listed companies have reasonable supervisory board size, the supervisory board meetings is properly, but some listed companies’supervisory board are useless.2.The profitability is in good condition of Shandong listed companies. The trend of per earnings share is volatility. There exists a positive relationship between the behavior of big shareholder, board size, pay of directors, executives’share holding and earnings per share. But the ownership concentration, the proportion of executive board members has a negative impact on the earnings per share.3. The returns of shareholders is low and it has large differences among companies. The income, equity scale, executives size have positive influence on governance performance.4. The agency cost is at about20%of Shandong province listed companies and has a downward trend. The agency cost in stated-owned companies is lower than that of the private companies. The gender of executive team, the participation of shareholders, the ratio of independent directors, the strategy committee as well as the change of board chairman is positive for decreasing the agency cost.The innovation is as three following:1.The index system of corporate governance performance is proposed,which distinguishes the governance structure, governance behavior, financial performance and governance performance.2. Companies profitability, shareholder protection and agent efficiency are systematic consideration on the empirical research on governance performance and its influencing factors, which make the conclusions more systematic.3. It is full accounted for governance structure, its interaction and other factors which may influence governance performance. It is useful for avoiding the one-side conclusion.The suggestion are proposed which include the improving governance structure, perfecting the behavior of major shareholders, regulating the general meeting and board meeting, optimizing the board structure, improving the sensitivity between the pay of directors and executives and governance performance, improving the effectiveness of board supervisors.As the limitations of data, the empirical test on the influencing factors of governance performance has not included the factors of external governance environment which may affect the stability of the conclusions.