The Research On The Relationship Between Internal Governance Structure Of The Listed Family Enterprises In Chinese And Their Performance

As the economy grows, more and more people pay attention to the growth of ourcountry family firms which become a significant growth sector in national economicdevelopment. Besides, numerous studies prove that the validity of family firms’ governancestructure can constrain development of those family firms. Compared with general publiccompanies, family firms have key differences, such as ownership structure, features of board,executive pay and so on, which show its specificity and complexity. For those reasons, thisthesis selects the listed family firms as study object, explores the relationship between itsinner governance structure and performance using the data of2012. On the basis of theoryresearch about family firms’inner governance structure and performance at home and abroad,a multiple linear regression model is established in order to carry on theory analysis andempirical research about correlation between inner governance structure and performance infamily firms.This thesis picks up111listed family firms from Shenzhen Stock Exchange andShanghai Stock Exchange as sample to carry on empirical study demonstrate the relationshipbetween ownership structure, features of board, executive pay and performance of those firms.The outcomes are as following:(1) the relationship between first major shareholder of familyfirms and performance is negative correlated;(2) the relationship between proportion offamily shareholding and performance is positive correlated;(3) the relationship betweenfamily control and performance is positive correlated;(4) there is no notable relation betweenthe size of the board of directors and performance;(5) there is no notable relation between theproportion of independent directors and performance;(6) there is no notable relation betweenthe size of the board of supervisors and performance;(7) two post separation and corporategovernance performance is not significant related;(8) the relationship between total pay ofexecutives and performance is positive correlated. Based on the empirical results, somesuggestions are raised in order to improve performance of listed family firms from the angelof perfecting family firms’inner governance structure.