Corporate Governance and Operating Performance: Evidences from Chinese Small and Medium-Sized Firms

Abstract

This paper pays attention to the relationship between corporate governance and operating performance. Empirical researches stood on a special position of small and medium-sized enterprises and used 318 observations. Final conclusions show that operating performance is positively relative to proportion of controlling stockholder and concentration on stocks from top 2 to 10 stockholders. But operating performance isn’t relative to the characteristic of controlling stockholder. Furthermore, operating performance is negatively relative to board size and proportion of independent directors. Institution investors also would promote operating performance. Empirical results would help to strengthen corporate governance for small and medium-sized enterprises.