Corporate Governance and Its Modernization: The Fundamental Basis of NGEs’ Growth and Development in the New Stage

Abstract

As many research findings have revealed, it is beneficial in terms of ongoing and future enterprise performance for NGEs to adopt a governance model that fits best with their development at different stages and under circumstances, and, furthermore, that there is no fixed, optimal model of governance. Hence, the governance model of enterprises must change in accordance with the corresponding changes in their development and environment. Otherwise, it will inevitably impede the promotion of enterprise performance and even hamper potential development and growth. Globally widespread, the governance model of family enterprises can promote NGEs’ growth at particular stages of development. Even when an enterprise has succeeded in listing on the stock market and appears as a public enterprise, it can still achieve excellent performance under the family control if the details of its governance model are arranged appropriately.