Research On The Influence Of Corporate Governance Structure On Growth Of GEM Listed Companies In China

As an important supplement to the main board market,growth enterprise market(GEM)was officially listed in 2009 and it is now at the early or middle growth stage.On one hand,GEM listed companies have become important driving force for Chinese economic development with their high-tech content and high growth potential.On the other hand,due to the issue of internal governance structure,their business performances are polarized and their growth are inhibited.Robust corporate governance structure is an important prerequisite for supporting their daily operation,enhancing core competitiveness and healthy and rapid growth.Therefore,this paper argues that it is necessary to study the influence of corporate governance structure on growth,so as to provide practical guidance for GEM listed companies in China to optimize their internal governance structure,promote the growth,and promote the development of GEM market.Based on theoretical analysis and empirical study,this study takes the financial indicators of Chinese GEM listed companies in 2016-2018 as samples,and uses the principal component analysis method to develop a set of comprehensive evaluation index system.Then,13 indexes are selected from four aspects:board characteristics,equity structure,executive incentive and board of supervisors governance.The multiple linear regression analysis is used to explore the influence of corporate governance structure on growth.The results show that the shareholding ratio of board,the total remuneration of the top three directors,the largest shareholder's shareholding ratio,the second to the tenth largest shareholders' shareholding ratios,the shareholding ratios of senior managers,the total compensation of the top three executives and the shareholding ratios of the board of supervisors are positively correlated with growth.The size of the board,the proportion of independent directors,the ratios of the first and second largest shareholders' shareholding,the size of senior managers,the size of the board of supervisors the meeting time of the board of supervisors are not correlated with growth.Generally speaking,there are still some problems in the governance structure of GEM listed companies in China.Most of the boards and the boards of supervisors are only set up to comply with the law.They do not really play their role,or even inhibit the growth of enterprises.Therefore,enterprises should promote the continuous optimization and upgrading of the corporate governance structure and the continuous improvement of enterprise growth.