Empirical Study Of The Performance Related Corporate Governance Structures Of Listed Companies In The Financialcrisis

In September 2008, along with the subprime mortgage crisis which results from the deflation of the real estate related bubbles in America comes the global economic recession. Due to the crisis, a major fluctuation in stock market throughout the world and considerable financial institutes end up with bankruptcies or major rearrangements. Thus, it seems to be inevitable for the real economy to suffer the tremendous impact. With the United States and other Western countries, China is in the periphery of the crisis, it still causes fairly extensive damages on Chinese economy as response to the economic globalization.The financial crisis spreads to a wider scope with a greater impact strength. wide and strength, most of the countries affected by the impact of the financial crisis led to economic growth loss and even recession. Studies have shown that defects in corporate governance is one of the main causes of the financial crisis. Thus, the corporate governance structure of the new system to help enterprises improve their operational efficiency, while also combating a variety of operational risks. For the genesis of the global financial crisis, different scholars and research institutions to study from different angles, have achieved fruitful results. However, according to the existing literature review, the majority of researches about this crisis focus on the macro level rather than analyze it at a micro level. Given to the reflection on this specific financial crisis, this article takes the corporation governance as a breakthrough to find the methods dealing with the future crisis. The applied methodology in this article is to analyze the influences by particular corporation governance structure on the performance of Chinese listed companies, then draw a contrastive study between the respective influence of pre-crisis corporation governance structure and in-crisis corporation governance structure on the performance of Chinese listed companies.This article employs the data of ordinary share in Shanghai and Shenzhen stock market from 2004 to 2008 to draw an empirical study on the topic introduced above with two regression models. The conclusions summarized briefly as below:First, during the financial crisis, there is a positive correlation between the concentration ratio of share ownership,executive pay and the performance of the enterprise. By contrast, a negative correlation between the property of share ownership of State-owned stock or State artificial person stock, the independence of the Board and the performance of the enterprise.Second, comparing to the pre-crisis corporation governance structure, the increase in concentration ratio of share ownership and executive pay will better benefit the performance of the enterprise. While, the increase in property of share ownership of State-owned stock or State artificial person stock and the independence of the Board will bring about a decrease in performance of the enterprise.This article takes Chinese listed companies which are in the periphery of the financial crisis as the subjects to analyze the influences by the corporation governance structure on the performance of these companies. Therefore, it may enrich the related theory about the corporation governance in China. However, due to some minor deficiencies of the chosen variables, samples, sample-period and the econometric model, the result of the empirical.