Study On The Effect Of Corporate Governance To Enterprise Efficiency Based On Life-cycle

Corporate governance issues have always been the hot topic of attention. It’s an important topic in academic research. The contradictions between shareholders and managers or small shareholders and large shareholders are increasingly prominent. The problems such as false accounting, corporate bankruptcy, and financial crisis are more and more. So the existences of these problems take people more attention on the fluency of the not perfect corporate governance mechanism. Improper governance mechanisms to some extent led to the contradiction in agent, interest encroach on serious, resulting in inefficient enterprises. This paper studies the effect of internal governance mechanism on enterprise efficiency from the ownership structure, board characteristics, structure and executive incentive, and the audit committee of the board of supervisors because the company’s internal governance mechanism is unreasonable and the reality of enterprise efficiency is low. So this paper needs to build a reasonable internal corporate governance mechanism to promote the optimal allocation of resources and improve the efficiency of enterprises.In this paper, we read a lot of the related literature at home and abroad, and then summarize the focus and the shortcomings of the research both at home and abroad. This paper studies the influence of corporate governance on the enterprise efficiency by the ownership structure, board characteristics, structure and executive incentive, and the audit committee of the board of supervisors as factors of internal governance mechanism. Our object is the manufacturing listed companies of Shanghai and Shenzhen A share companies. This paper makes some empirical study, the specific content of the following several aspects:(1) This paper is based on the literature review at home and abroad and is researched on this article defining the concept of corporate governance, enterprise efficiency etc. Then the principal-agent theory, stakeholder theory, incomplete contract theory, and theory in detail in this paper, the modern industry with the corresponding are theory basis.(2) The paper uses A-share manufacturing listed companies in Shanghai and Shenzhen two city as research samples. The total samples data is 6577. This paper uses the cash flow group legal cash flow(operating activities cash flow, investment activities and financing activities of cash flow) division of the life cycle of manufacturing listed companies in our country and then analyzes the present status of the life cycle of the manufacturing listed companies in China. This paper selects the total assets, number of employees, intermediate cost as input variable, with operating income as output variables, through data envelopment model and DEAP2.1 software for screening 4130 observations of calculation. It is concluded that China’s manufacturing enterprise efficiency of listed companies and analyze the efficiency of manufacturing listed companies in our country enterprise.(3) This paper selects some data from 4130 observations and obtained 2847 valid values. Making the technical efficiency as a measure of the efficiency of enterprises and study the influence from the corporate governance of ownership concentration and equity balance degree, the scale of the board of directors, the board of directors meeting, the chairman and general manager of the joining together of two position, the proportion of independent directors, supervisory board size, the number of meetings of the board of supervisors, executive compensation, management equity, the audit committee set up eleven aspects respectively by using descriptive statistics and linear regression method for research of the relationship and enterprise efficiency. Research shows that equity concentration, number of board meeting, chairman and general manager the joining together of two job positively related to the enterprise efficiency, but no significant correlation; The board scale and enterprise efficiency were not significant negative correlation relationship; Equity balance degree, the proportion of independent directors, supervisory board size, the number of meetings of the board of supervisors, executive compensation, management equity and the establishment of the audit committee and enterprise efficiency significantly positive correlation.(4) The influence of corporate governance on the enterprise efficiency effect can vary in view of the companies being in a different life cycle. This paper study the relations of enterprises corporate governance variables impact on business efficiency from the growth period and mature period respectively. The study found that in the growth enterprise, in addition to equity balance degree significantly negative correlation with the enterprise efficiency, all other variables are significantly positive correlation with the enterprise efficiency. In mature firms, ownership concentration, board size, board meeting frequency, the chairman and general manager of the joining together of two position significantly negative correlation with the enterprise efficiency; Size of the board of supervisors and enterprise efficiency were not significant positive correlation; Other variables are significant positive correlation with the enterprise efficiency.Finally, the paper put forward related suggestions the improvement of corporate governance mechanisms in order to improve enterprise efficiency from the growth period and mature period respectively based on the research conclusion.