An Empirical Research on Governance Classifications of State-Owned Enterprises in China

Based on the "classified governance of state-owned enterprises", this paper verifies the validity of reform classifications and governance classifications through the empirical study on 244 listed companies. We classified state-owned enterprises (SOEs) in China into two categories according to their operations and functions: public-welfare SOEs and competitive SOEs. We found that the ratio of the state-owned shares, the average salary of senior executive, the average age of senior executives and the ratio of independent directors etc have different effects on the performance of the company as the sort of enterprise changes. That proves that it is quite necessary for SOEs to improve reform classifications and governance classifications. This article can provide a strong support for SOEs reform.