Research on the reasons for the continued decline in corporate performance:evidence from SMEs of China

Abstract

Nowadays, the domestic economic situation is changing rapidly, and many small and medium-sized board listed companies have been in a state of long-term decline in performance due to the impact of the domestic and foreign economic environment and their own structure. The performance is in a state of continuous decline, which means that there are problems in the corporate governance structure and management methods. Over time, the market share of the company will decline, the competitiveness will be reduced, and the company's reputation will be affected, which is not conducive to the sustainable development of the company in the rising period. The establishment of small and medium-sized board is an important measure for the country to improve the capital market, so it is necessary to analyze and improve the related research on the performance decline of small and medium-sized board companies. This paper proposes research hypotheses on the basis of previous research. The research results show that technological innovation, executive shareholding ratio, executive compensation and enterprise size have a negative impact on the continuous decline of performance, fixed assets are positively related to the continuous decline of performance, and there is no significant correlation between costs and corporate performance. Finally, on the basis of theoretical analysis and empirical test, some suggestions are put forward to effectively avoid the continuous decline of performance and improve the performance of enterprises.