Human Capital Characteristics And Performance Of Companies Listed On GEM Founder

Shenzhen GEM is developing rapidly since its founding in October2009. In2009there are36companies in the first batch. Deadline to October9,2012,the number of landing GEM companies has reached355.The rapid development of the GEM not only brings in many opportunities, but certainly makes more challenges to enterprises. In the majority of companies listed on GEM, as chairman of enterprises, the largest shareholder or actual controller, the founder often close contact with the company’s daily business activities that cannot be ignored from the establishment of the company’s strategic objectives to the approval of the company’s major decisions. Due to the special nature of companies listed on GEM, the founder often holds the real power in the enterprise, leading to the more far-reaching impact of the founders of corporate governance.Under this background, this paper deeply analyzes human capital characteristics of the company’s founder of GEM to investigate the influence of human capital characteristics of GEM listed company founder on the company performance. However, what is the effect of the characteristics of the human capital of the founder? And how? Based on this, the study on the basis of relevant literature divides the founder of GEM listed companies into two categories according to the way of the founding:the founder directly founding company (type A), the founder indirectly founding company by another company or several companies (type B). From aspects of the founder’s personality characteristics (age, education), occupational characteristics (length of service in the enterprise, the annual salary received from enterprise, whether concurrently acts as the chairman and CEO, and control of the enterprise), social characteristics (political relations, trade relations), this paper separately analyses the relationship between founder’s human capital characteristics and corporate performance, and makes a comparative study of the influence of two different types of founder’s human capital characteristics on corporate performance.The results show that:corporate governance is positively related to founder’s age, education in a significant level. Corporate governance has significantly positive relation with annual salary and control power of type A fonder, while the relationship is not statistically significant in type B founder. Length of service of both two types of founder can promote corporate governance, and concurrently acting as the chairman and CEO devalues corporate governance function, but the influence are both not significantly. Corporate governance is significant to both social relationship and trades relationship of type B founder, among which corporate governance is positively related with social relationship on the level of10%, but corporate governance is negatively related with trade relationship. As for type A founder, the relationship between corporate governance and social characteristics is not significant.The article provides regulators some guidance to assess the companies listed on GEM; helps investors better understand the performance of companies listed on GEM, and thereby making better investment decisions in their favor; Meanwhile, this paper also provides advice for founders to optimize the performance of the company by improving their relevant characteristics.