Study On The Influence Of Corporate Governance Structure On Profitability Of Listed Electronic Information Manufacturing Companies

In recent years, with the rapid development of global economy and the improving of science and technology, the electronic information manufacturing industry supported by high-tech has achieved rapid development, and has become a strategic industry with highly attention of the world. After the accession to the World Trade Organization,the international economic development brings great opportunities for the development of Chinese electronic information manufacturing industry. The overall scale is growing. The adjustment of industry structure is accelerating. The foreign trade is developing fast. The independent innovation ability is improving. The enterprise strength is gradually increased. Now, the whole economic performance is improving. The electronic information manufacturing industry has highest information level in the whole Chinese manufacturing industry. The listed companies in this industry have the characteristics of high investment, high risk and high yield. This means that the scientific strategic decision and professional management level has a significant effect on the listed companies of this industry. It is directly related to the economic efficiency and profitability. The core and purpose of corporate governance is to ensure that the company can make scientific strategic decision, and improve the efficiency of the company’s operation and management. Therefore, this paper analyzed that how the governance structure influence the profitability of the listed electronic information manufacturing companies. And then, this paper put forward some Suggestions to improve the corporate governance level and the profitability in view of the research conclusion.Firstly, based on the study of literature, this article analyzed the corporate governance structure’s impact on profitability with the principal-agent theory, the two power separation theory, the incentive constraints mechanism theory and stakeholder theory. Secondly, this paper expounded general situation of electronic and information manufacturing industry in China, and summarized the present status of this industry listed company governance and profitability by the data of 2012 to 2014 electronic information manufacturing listed companies. Again, based on the electronic information manufacturing listed companies’ data in 2014,this paper select eight indicators to represent the profitability, and build a comprehensive profitability evaluation model of the electronic information manufacturing listed companies, using the method of factor analysis. And then, this paper empirically tested the relationship between the corporate governance structure and profitability with multivariate linear regression method, from four aspects: the ownership structure, board of directors, board of supervisors and management incentive. Finally, this paper analyzed the research conclusion, and put forward some rationalization proposal.Based on the theoretical analysis and empirical test, this paper drew the following conclusions: equity concentration, the proportion of the independent directors, CEO wage had significant positive impact on profitability; proportion of tradable shares, chairman and general manager situation had a significant negative influence on profitability; the size of board of directors and supervisors, CEO share-holding rate did not have significant on profitability; the company size had significant positive influence on profitability; the asset-liability ratio had a significant negative influence on profitability. Through the analysis of the conclusion, this paper sum up some suggestions as follow: maintain moderate ownership concentration, keep balancing ownership structure; establish perfect Uygur power mechanism to protect the interests of minority shareholders; improve the quality of the decision-making, optimize the board leadership structure; perfect the internal supervision mechanism, perfect the independent directors system and board of supervisors system; optimize the management incentive mechanism and carry out diversified incentives.