In order to deeply explore the impact of internal governance structure on the
failure of start-up enterprises in the manufacturing industry, this thesis takes
manufacturing enterprises delisted from the NEEQ as the research objects.
This thesis defines those delisted compulsorily and those applying for delisting
voluntarily for being unable to meet financing expectations as unsuccessful
enterprises through literature research and based on the analysis of reasons for
delisting. By collecting data of enterprises delisted from the NEEQ in 2017 from
Wind Database and the website of NEEQ, and matching them with data of successful
enterprises, the thesis also carries out empirical research and analysis of the impact of
factors on entrepreneurial failure.
The results show that: the size of the board of directors is positively related to the
failure of enterprises, which means that the larger the board of directors is, the greater
possibility of failure an enterprise may face; there is no correlation between the
number of independent directors and the failure of an enterprise, which may be due to
the fact that compared with those listed on the main board, the small and
medium-sized board and the growth enterprise board, most of enterprises listed on the
NEEQ carry out shareholding reform just several months before their listing. The
NEEQ does not require listed enterprises to have independent directors, so the impact
of the number of independent directors is not significant; the combination of chairman
and general manager is negatively related to the failure of enterprises; the
concentration of ownership is negatively related to the failure risk of enterprises; the
participation of the actual controllers in corporate operation and management will
increase the failure risk of enterprises, and this impact will be intensified with the rise
of ownership concentration.
This thesis measures entrepreneurial failure in a qualitative way; secondly, it has
limitations in the applicability of research conclusions; thirdly, the research quality of
this thesis is subject to the integrity and timeliness of data.
The findings of the research can offer practical guidance for small and
medium-sized manufacturing enterprises in China to establish the favorable corporate
governance structure and enhance their growth, and also are helpful for the
enrichment and development of relevant corporate governance theories. In addition,
the findings also provide some thoughts on the development of the manufacturing
start-up enterprise that the author works for.
The research of this thesis is mainly based on the fact that China’s real economy
is generally listless after the global financial crisis, and the Chinese manufacturing
industry confronts the tremendous obstacles in the process, especially start-up
manufacturing enterprises, which have developed for many years in a favorable
Keywords: entrepreneurial failure,start-up enterprises,internal governance