Impact Of Corporate Governance In Shandong Province On Operating Performance

The relationship between corporate governance and corporate performance has b een the focus of the domestic and foreign scholars’ reseach since corporate governanc e theory was proposed. As each study focus on different analyzing perspective and dif ferent indicators to select,the relevant conclusions were consequentially inconsistent.The operating performance has become an important issue which corporations face in the development, good governance structure can effectively improve and enhance the operating performance and can increase the value of the corporate, while the better co rporate performance will affect the optimization and development of the corporate go vernance structure. Nowadays the practice that the domestic and foreign scholars mai nly select listed companies nationwide as examples,when they study the relationship b etween corporate governance and corporate performance, can not react the developme nt characteristics of companies in a certain area. So this paper limited a certain area-S handong province to study the relationship,and focus on analyzing the impacts of gov ernance structure on business performance of listed companies in shandong province.This paper uses a combination of theoretical and empirical methods, we first study the impact of the governance structure on the operating performance with theory.It plays a good supporting role for the assumptions and empirical analysis to be carried out later; followed using 608 listed companies from 2008 to 2012 in Shandong Province to verify assumptions, then we can conclude the impact of corporate governance structure in Shandong Province on the operating performance. We has selected two representative directions from governance structure, one is the ownership structure, including the indexes of the nature of the ownership concentration and equity; the other is the management structure, including a board structure, board of supervisors structure and senior management structure those three angles. In measuring operating performance, in order to make the result more comprehensive,we use the principal component analysis, contains 12 indicators of five main components, eventually got the expression of the performance; also using descriptive statistics and correlations analysis, obtained correlation between governance structureand management performance. Finally we put forward the corresponding countermeasure and the suggestion from the empirical results of the governance structure of listed companies in Shandong province, in order to improve the business performance of listed companies in Shandong province, and puts forward the future research direction.