Ownership, Management and Performance of SMEs: Evidence from Listed SMEs in China

While there is a vast amount of research on SMEs' financing and development, little attention has been paid to SMEs' corporate governance. This article aims to seek an optimal pattern of corporate governance in regard to the concentration and the combination of ownership and management. Empirical analysis shows that concentration of ownership and appropriate combination of ownership and management will help SMEs improve their performance; however, we find no evidence that the concentration of management will contribute to performance improvement, which implies that there is no right pattern for SME management.