Study On Corporate Governance And Delisting Of Listed Companies

Since the establishment of Shanghai Security Exchange and Shenzhen Security Exchange,the capital market of our country has made great progress,the market value of shares have come out in the front of the world,and listing companies have played an increasingly important role in our economy.However,recent negative incidents,such as Leshi(“Leshi Internet Information and Technology Corp.,Beijing” for short)and *ST Changsheng(“Changsheng Bio-Technology Co.,Ltd.” for short),show that there are still some issues to be addressed regarding the corporate goverance and delisting system of China.Therefore,the study of delisting of listing companies and coporate goverance is very important for the healthy development of capital market and maintaining confidence in listing companies.In this paper,comparation has also been carried out for the coporate goverance and delisting regulations between China and USA,we see that China has drawn on the experience of many regulation of the United States regarding coporate goverance and delisting,however,there are still some problems in perfecting the corporate goverance and delisting system of China,some regulation has failed its designed purposes,there are large differences in the details of coporate goverance and delisting,and there are significant differences in its effectiveness as well.In empirical study,we select 79 delisted companies from 2001-2018 as sample,and 79 listed companies with similar characteristics in sectors,sizes and years as control sample,we use independent T-test and logistic regression analysis to study the impact of coporate goverance characteristics to the delisting risk,and it has been found that oversize of board of directors is linked with a increasing in the risk of delisting,while other coporate goverance characteristics,such as ownership concentration,number of meetings of board of supervisors,size of board of supervisors,CEO and chairman duality have low significance with the risk of delisting,and thereby shall not be considered as major factors affecting delistings.In case analysis,we select Alibaba Network Co.,Ltd,which is delisted in Hongkong,the company has adopted VIE structure,the coporate goverance has adopted a structure with unequal right of stocks,the case is very representative and therefore is very meaningful.In the paper,other five delisted companies in 2018 have also been studied,among which Zhonghong Realestate is the first listing company in China which has been delisted because it stock price fall below 1 RMB in 20 continuous days,the company is also highly representative for its high liability which is common among listed companies in real eastate sectors.Through above comparation and analysis,we may see the problems in the delisting system and coporate goverance of China,the delisting regulation is inefficient,easy to be avoided by listing companies,the regulation regarding coroporate goverance is easy to be bypassed,it is those small differences in details that have caused larged differences in its efficetiveness.Therefore,in order to perfect the delisting system and coporate goverance of listing companies in China,it is recommended that relevent regulations for corporate goverance and delisting of listed companies shall be further perfected,and more importantly,high attention shall be paid for the credibility and integrity in the security markets with the supporting of laws and regulations.