Study On The Relationship Of Corporate Governance

The GEM was established in Shenzhen Stock Exchange in October23,2009.From then on, it provides a smooth financing channel and good development spacefor our high-tech enterprises. In recent four years, GEM-listed companies havereached359. According to Schumpeter’s theory of innovation, technical innovation isthe important internal factors to promote enterprise’s development. At the same time,the investment and distribution of innovation resource is a kind of investmentbehavior. It will be inevitably affected by the structure of company governance. Butmost of the GEM companies are family business before listed, so their corporategovernance structure compared with other listed companies have their unique side.Especially its ownership structure is different from those companies listed on theMain Board. Therefore, it is urgent to solve the problems whether the technologicalinnovation investment can be effectively transformed into the performance and howthe governance structure affects the enterprise’s technology innovation behavior. Atthe same time, the establishing of GME and the maturity of information disclosuresystem make the research of GME possible.Based on governance structure theory and technology innovation theory, thispaper has set up the research framework of governance structure, technologyinnovation investment and company performance. It uses793samples in the GEMlisted companies of our country from2010to2012as the research sample and it hasdiscussed the relationship among governance structure, technology innovation andcompany performance of GEM by descriptive statistics, factor analysis, correlationanalysis and multiple linear regressions. The empirical results show that:(1) TheGEM listed company’s ownership concentration and firm performance is positivelycorrelated.(2) Equity restriction has a positive correlation with corporate performance.(3)Board size and corporate performance was negatively correlated.(4) There is nosignificant relationship between the proportion of independent directors and corporateperformance.(5) Executive compensation and corporate performance is positively correlated.(6) There is no significant correlation between technological innovationand corporate performance.(7) After joining the variable of corporate governancestructure, the presence of a significant positive correlation between technologicalinnovation and corporate performance. On the basis of the conclusions of theempirical analysis presented GEM listed companies to improve the corporategovernance structure and enhance business performance. Only when the enterprise isunder a good governance structure, investment in technology innovation can reallyplay a role, effectively improve business performance.