Empirical Study On Performance Of Corporate Governance Of New OTC Market Listed Companies

As a modern enterprise system. Corporate governance is the most important organization,and a powerful guarantee in a healthy development enterprises. Supervision and motivation is the core content of corporate governance. The most essential purpose of corporate governance is reducing agency problems arising from the separation of ownership and management.Thus, good corporate governance can encourage enterprises to develop a scientific decision-making, improving operational efficiency, reducing agency costs, thereby effectively improving the company's performance.New OTC Markets is an important achievement of the development of multi-level capital market. With the explosive growth of new OTC market in 2014. equity financing of SMEs era has arrived. However.new OTC market listed companies mostly has just set up for a short time. Most of these companies lack of robust corporate governance mechanism,whose equity is highly concentrated and lack of independent directors and so on. Although in its infancy, the new OTC market business as "Chinese Nasdaq ", the majority of investors and SMEs has high hopes for its important role in the improvement of China's capital market. To find some empirical evidence,we using empirical analysis in terms of ownership structure, board structure, management incentive to study the impact of new OTC market listed companies" corporate governance on business performance, and trying to sound new OTC market corporate governance mechanism and improve the new OTC market system environment.Firstly, we choose the new OTC market listed companies in 2014 as the research sample. We select data governance indicators and business performance indicators related to these companies disclosed in the 2014 annual report and use the multiple regression model to empirical analysis the relationship of the new OTC market Corporate Governance and Corporate Performance. The results show that new OTC market business'ownership is more concentrated, the higher the performance of the enterprise. Because the respect to the main board listed companies, the shareholders and managers of human agency chain of the new OTC market listed companies is much shorter, ownership concentration is higher, the corresponding agency cost is relatively lower. Then the company is able to achieve higher performance. Board size, there is no significant correlation between the proportion of independent directors and corporate performance, indicating that the board size of the new OTC market business is too large and the independent director system adverse effects. Two job in one is conducive to the improvement of the performance of three new board Enterprises; and inter-company executive ownership and corporate performance shows a significant positive correlation.Based on the conclusion of empirical research combined with the reality of current our country new OTC market making business, this paper presents maintain ownership concentration, to strengthen the credit education of shareholders:attach importance to the board of directors will independence and play the actual utility of independent directors: Rational view of the two jobs in one. improve the management of enterprise operators: develop a reasonable incentive mechanism, ensure shareholder rights and interests of the policy recommendations for the new OTC market making business, for the new OTC enterprise improve corporate governance, provides a reference to improve the enterprise performance.