Research The Relationship Between Corporate Governance And Corporate Performance Of Listed Financial Companies

Finance is the core position of the operation of the national economy.Improving the corporate governance mechanisms of financial companies play an important role to enhance the competitiveness of Chinese financial listed companies.Therefore, through quantitative evaluation of the level of corporate governance and corporate performance of Chinese financial listed companies, we can delve into the internal mechanisms between the corporate governance and corporate performance.So that, it has an important significance to promote the healthy development of Chinese listed financial companies.This paper choses 28 Chinese financial listed companies which are listed from2007 to 2012 in China’s Shanghai and Shenzhen stock plate as the research objects.First of all, through theoretical studies and literature review, we can summarizes the interaction mechanism between corporate governance and corporate performance.Secondly, the paper uses the principal component analysis method to evaluate the corporate governance level and corporate performance level. Finally, the paper uses the method of dynamic panel data model(GMM) to examine the corporate governance role in promoting corporate performance and the corporate performance feedback effect on corporate governance individually.The following are the research conclutions. The first is that the corporate governance level and the corporate performance level of Chinese financial listed companies have a upward trend. Secondly, we can know that the corporate governance of the financial company has a significant positive role in promoting the improve of corporate performance. Thirdly, the corporate performance also has certain effitive feedback effect to increase the lever of corporate performance. But the feedback effect of corporate performance on corporate governance is significantly less than the promoting effect of corporate governance on corporate performance. Moreover, the expand of company size have a positive role in promoting the corporate governance and corporate performance. Based on the above findings, the paper then put forward some recommendations from the angles of governments, companies and individual investors to individually.