The Study Of The Impact Of Quality Of Corporate Governance Upon Corporate Performance And Value Of The Public Company In The Western Region Of China

Listed company,as the senior form of modern corporations, exists for more than20years in our country. The condition of the development of listed companies plays an moreand more important role in economic development to regions and even the whole country.And it promotes the constant development of the securities market in China. Listedcompanies,as the basis of the securities market, is becoming an indicator which reflects andmeasures the level of economic and finance development of a region. The western regionsexperience a good time when the region is developing very fast as well as the listedcompany since the western development strategy has been implemented. There are192listed companies in the western region in2000, but now the number is366, accounting for14.56%of listed companies in our country. However, listed companies has also exposedmany problems which affect the development of the listed company in the process of rapiddevelopment, what is the relationship between governance level and the performance orvalue of listed company has been a great topic of many scholars for a long time. The mostof the current domestic research about the relationship between governance level and theperformance or value of the listed company focus on the listed company of the wholecountry. There is a large possibility to ignore different characteristics between listedcompany of different areas. In order to discover how corporate governance influence theperformance or value of the western China, this article will concentrate to study listedcompanies of China’s western region. So we can put forward policies and suggestions forlisted companies of governance of the western China.Firstly, this paper describes the meaning、purpose and methods of the study, and teaseout the literature about the relationship between corporate governance and corporateperformance or value from foreign and domestic research. Then, this article introduces thedomestic and foreign systems which measure the level of corporate governance, andcompiles the index-L to measure the level of corporate governance of listed companies inwestern regions. Then, this paper analyses the present situation of the governance of listedcompanies in western region based on the index-L. In the fourth part of this article, we testthe relationship between the corporate governance and the performance or value with theindex. The empirical results show that if the index-L of the listed company is very large, the performance of the listed company will be also very large,but the value of the company isuncertain. Finally, we put forward corresponding suggestions based on the empirical resultsand the current quality of corporate governance in western regions. And we analyze thedeficiencies and the innovation at the end of the article.