Research On The Impact Of Corporate Governance On Excess Profit

In recent years,China's economy has declined,and the state has clearly proposed that the new generation of information technology industry as one of the new pillars of China's economic development,which shows that it has a profound impact on the sustained and healthy development of China's economy.Corporate governance is an important part of modern enterprise system construction.Improving corporate governance quality is beneficial to enterprises to achieve good business results among market competitors and promote long-term development of enterprises.However,the existing literature lacks research on this topic.Therefore,this paper will study the impact of corporate governance of listed companies in the information technology industry on excess profits.Based on the relevant theories of corporate governance,based on the research status at home and abroad,this paper collects the governance structure data and financial data of 484 information technology industry listed companies from 2010 to 2017,and uses SPSS analysis tools to adjust the equity concentration and equity balance.Five aspects of board governance,company leadership and supervisory board supervision to measure corporate governance structure,the excess profit is defined as the part that exceeds the average profit level of the information technology industry,specifically the difference between the company's sales gross profit margin and the profit rate of the main business and the average of the information technology industry.They are defined as excess profit GEP and excess profit MEP,respectively,to explore the impact of corporate governance on excess profits,and divide the actual controller into state-owned capital holding companies and non-state-owned capital holding companies for further research.The results of empirical analysis show that:(1)From the aspect of equity concentration,the shareholding ratio of the largest shareholder is negatively correlated with the excess profit GEP.The sum of the shareholding ratio of the top five shareholders is positively related to the excess profit GEP,so the first one is reduced.The shareholding ratio of shareholders and the increase in the shareholding ratio of the top five shareholders are beneficial to the company to generate excess profits.(2)From the aspect of equity balance,the Z index is negatively correlated with the excess profit GEP,so lowering the Z index is beneficial to the company to generate excess profits.(3)From the perspective of governance and governance of the board of directors,the number of board meetings in the year is positively related to the excess profit GEP.The size of the board of directors is positively correlated with the excess profit MEP.The balance of the top three directors with the highest proportion of the board of directors and the highest amount of compensation and the excess profit GEP The excess profit MEP is positively correlated.Therefore,moderate board meetings are held to expand the size of the board of directors,and the increase of equity incentives and reward incentives for directors is beneficial to the company to generate excess profits.(4)From the perspective of supervision of the Board of Supervisors,the size of the Board of Supervisors is negatively correlated with the excess profit MEP.The shareholding ratio of the Board of Supervisors is positively correlated with the excess profit MEP.Therefore,streamlining the members of the Board of Supervisors and increasing the equity incentives for the Supervisors will help the Company to generate excess profits.(5)From the perspective of the actual controller,the impact of different actual controller categories on the excess profit GEP and excess profit MEP is significantly different,but whether it is a state-owned capital holding company or a non-state-owned capital holding company,the board reward incentive characteristics and excess profit GEP The excess profit MEP has a significant positive correlation,so it is necessary to pay special attention to the incentives for directors..The research results of this paper provide a basis for the improvement of governance structure of listed companies in the information technology industry,give different suggestions to different actual controllers,and provide certain reference opinions for rational investors in selecting investment targets.It has theoretical and practical significance for the healthy and sustainable development of China's economy.