Governance Structure,Financing Capacity And SMEs' Performance

Corporate governance structure is a narrow concept of corporate governance.It can be understood as internal corporate governance.It is the institutional arrangement for the balance of power,responsibility and profit formed by the company's owners,the board of directors,senior management and employees.In recent years,with the development of the economy,China has paid more and more attention to improving corporate governance.The introduction of a series of related measures has greatly improved the internal governance of listed companies,such as the “Listed Corporate Governance” promulgated in 2002.The Guidelines and the Guidelines for Listed Companies' Regulations as revised in 2016.In fact,the quality of the corporate governance structure is related to whether the company can continue to obtain financial support and performance improvement,which in turn affects the core competitiveness of the enterprise.Therefore,the research on corporate governance issues has been closely watched by the theoretical community and the industry.As we all know,a good governance structure can not only effectively improve the company's operating conditions,reduce corporate financial risks,but also improve the transparency of corporate financial information by improving the quality of information disclosure,reducing the information asymmetry caused by business owners and investors.The risk,which helps companies to obtain financial support and improve their financing capabilities.Sustained financial support is the guarantee for sustainable development of enterprises.Having good financing ability is the prerequisite for the sound development of enterprises.Enterprises can obtain sufficient financial support at different development stages according to their own development needs at a lower capital cost,for enterprise reproduction or scale expansion,which is the embodiment of the company's good financing ability.But in China,financing difficulties remain a key issue limiting the development of SMEs.The low financing capacity of SMEs will affect corporate performance and even the sustainable development of SMEs,and corporate governance structure has an important impact on financing capabilities.Therefore,in the development process of Chinese SMEs,financing capacity may play a mediating role in the impact of corporate governance structure on corporate performance,but this issue needs further verification.In view of this,this paper takes the internal and external financing ability as a dual intermediary variable,and creatively explores the mediating effect of the two governance processes in the process of corporate performance.The research conclusion has certain theoretical and practical guiding significance for the improvement of SME performance.Based on the data of China's small and medium-sized listed companies in 2013-2017,from the perspective of the dual intermediary of internal and external financing capabilities,we empirically examine the impact of governance structure on the performance of SMEs.The study found that the governance structure of small and medium-sized listed companies has a significant positive impact on corporate performance.The internal financing capability has a significant positive mediating effect,indicating that the higher the governance level of listed companies,the better the improvement of endogenous financing capacity.In turn,it helps the performance of SMEs to improve;the proxy variable Lev of the governance structure of external financing has a significant negative impact.The proxy variable Lev of the external financing ability has a significant negative impact on the performance of SMEs,indicating that the corporate governance level is improved.The external financing capacity will be improved,which will help the performance of SMEs to improve;whether it is internal financing capability or external financing capability,there are some mediating effects in the impact of governance structure on corporate performance.Finally,based on the conclusions,the corresponding suggestions are put forward.