A Study On The Influence Of The Governance Structure On Performance Of Listed Family Firms In China

Recently,the rapid development of listed family firms in China has become an important force in the development of market economy.However,coming with the New Normal Economy,deepening supply-side reform and the structural transformation of the economy,the family firms are facing the challenge of generating revenue and increasing their value through generation.How to improve its governance structure,increase the performance and sustainable inheritance becomes an important topic.In this paper,firstly making a comparative empirical analysis on whether the operating performance of listed family firms is superior to that of non-family firms and then take the panel data of listed family firms between the five years from 2012 to 2016 as a sample,selecting ROA and ROE as the dependent variable to explain performance indicators,and choosing ten independent variables of governance structure in the ownership structure,the characteristics of the board of directors and management characteristics and the corresponding control variables to build panel data model for regression analysis.The results of empirical analysis show that:Firstly,in terms of ownership structure,the largest shareholder,the equity balance and the proportion of outstanding share is significant negatively correlated with performance,the top five shareholders is on the contrary.Secondly,in terms of the board directors there is a significant positive correlation between family directors and performance,so does CEO duality.Thirdly,there is a significant positive correlation between executive compensation and performance.Lastly,the number of board meetings,the size of the board of directors,the proportion of family executives and the second generation of family involvement do not have significant correlation with performance.From the results of the study,it can be concluded that,on the one hand,the listed family firms should improve their governance by standardizing the ownership structure,raising the proportion of family members and adopting the management mode of combining the two roles of chairman and manager to improve performance.On the other hand,it is necessary to strengthen the management ability of the second generation of family firms,establish a complete intergenerational succession plan and inherit the family entrepreneurship,which help promote the long-term development of the family firms and realize the sustainable economic and social development.