A Study About Relationship Between Corporate Governance And Corporate Performance Of IT Listed Enterprise

IT industry is an emerging item of the tertiary industry in China. Its rapid pace of development and expanding scale make it the mainstay in China’s economic development by degrees. However, as an emerging industry, the study of the development about IT industry is relatively less. The degree of understanding of the relationship between the various elements of IT enterprises is still not clear.Especially, the research on the relationship between IT corporate governance and corporate performance is still in the basic level. Thus, the further study of the relationship between the two categories in the IT enterprise has become a very important subject. This paper carries out the research for the IT industry listed enterprises. The main purpose of this paper is to study the relationship between governance mechanism and enterprise performance of the listed IT enterprises, and explore the new connection of them through the angle of endogeneity. In this paper, the main research methods include means of literature research, comparative research method and combination of qualitative and quantitative analysis. Through the use of these methods, this thesis finally draws the conclusion of the study.Firstly, this paper elaborates the basic definitions of the basic concepts in this field of IT enterprise, corporate governance and corporate performance discussed from the aspect of theory research. After that the main content of principal-agent theory and stakeholder theory are introduced, which are theoretical support of corporate governance theory. On this basis, this thesis introduces the classification of the research literature on corporate governance and enterprise performance, and points out two types of literature research on company governance, namely the study of single impact of corporate governance mechanism on corporate performance and the study of the whole effect of the corporate governance mechanism on corporate performance. At the end of the paper, the endogeneity of corporate governance as the research foundation of this thesis is introduced from the theoretical perspective and empirical perspective,and meanwhile this paper points out the endogeneity problem in the empirical research of corporate governance, endogenous causes, endogenous consequences and instrumental variable method which is the measurement for solving endogeneity problem in detail. This paper retrospects the relevant endogenous research literatures on corporate governance and corporate performance as well as corporate value. Then this thesis introduces the basic situation of the IT listed enterprise as the research object, including business and corporate governance, finally summarizes the features of them.This paper firstly explains the basic concepts of this field from the theoretical research perspective. The meaning of the IT enterprise, as the main study object of this research, is defined as well. Secondly, the related literature reviews are combed and retrospected. Lastly, this paper introduces the governance endogeneity which is the basis of this study in detail.In the part of empirical research of this article, 100 IT listing corporations’ 2012 disclosed data have been selected. By using the method of principal component analysis, this paper constructs the company governance index and chooses the return on assets as the corporate performance consideration index. Through the comparative research method and based on the multiple regression equation, it compares the results from the two stage least squares method and the single regression model to analyze the relationship between corporate governance and performance. This paper draws the corresponding conclusion that obvious endogeneity exists between the mechanism of corporate governance and corporate performance in the IT enterprise listing corporation. The endogenous problem should not be ignored in the research on corporate governance and corporate performance of the IT enterprise. At the end of this thesis, this paper provides some opinions and suggestions on the governance structure selection of IT enterprise. Meanwhile,the development prospects of the corporate governance of IT industry are discussed. I hope this research can provide references for the development and improvement of IT enterprise.