A Study On The Relationship Between The Company Governance And Performance

First,the paper introduces the development process of governance principles in ourcountry,which is the base of the governance evaluation system.Then through learning theexisting systems of governance evaluation’s organizing principles, methods, indicatorchoosing, the paper designs a system of governance evaluation toassess the financial andinsurance listed companies in china in2009.The system contains four governance factors,which are theboard of directors, ownership structure, imformation disclosure and themanagement.Meanwhile,the paper finds these companies’data of performance between2010and2011,which is one year and two years after.So putting the hysteresis ofgovernance effect first,we are trying to study the relationship of corporate governance andperformance,which may afford a new proof to this kind of research.The emirical resultsshow that there is a positive correlation between the base period corporate governance andthe lag period performance,a company of good governance performace may display a goodcoporate performance.Speifically,there is a positive correlation between the base periodgovernance and lag one period performance,and then, there is a positive correlationbetween the base period governance and lag two period performance.Meanwhile,the resultsshow that taking the idex:Earning Per Share is not a good choice,because the idex may notwell represent the corparate performance. At the same time,the paper gives threesuggestions to improve the level of other companies’governance and also some suggestionsto improve the existing governance evalution systems.