An Empirical Research Of Corporate Governance And The Efficiency Of Resource Allocation

Corporate governance mechanism is effective in relieving large shareholders and minority shareholders, managers and outside shareholders proxy conflict between a system arrangement, it makes a contribution to protect the benefits of owners and operators,but also promoting the public companies to be stable,developed and potential.Optimize the allocation of resources means that the concentration of capital in sectors with higher returns, while reducing the ROI in the industry.This article, firstly based on the actual situation on the premise of fully explores the status quo of Chinese corporate governance, then contact he actual situation of the listed companies in Chinese industry progress, the relationship between sub-industry research industry efficiency of resource allocation and corporate governance as well as the impact and tried on the efficiency of capital allocation model reference Wurgler measure proposed in2000as a research-based resource allocation efficiency of this article, while building covering ownership structure, the board mechanism, management incentives and financial information disclosure G indicators to reflect the company governance.during the process, firstly set up the presume and resource allocation efficiency of the company concerned, then extract and follow Wurgler (2000) and Fang Junxiong (2006) research models and effective ideas to build another new model of this article which may clarify the difference of the corporate governance and efficiency of resource allocation in a company.The conclusion display that, the formation of the country’s resources allocation efficiency of significant differences between industries,corporate governance and resource allocation efficiency are significantly positive correlated.By affecting corporate governance mechanism for resource allocation efficiency of the research can help companies better understand the importance of corporate governance mechanisms to help companies better choice of investment and financing market, thus effectively improving the profit of companies in China, and keep Chinese securities market to be healthy and active.