Influencing factor of the GEM companies growth: Executives cashing or corporate governance

This paper examines the impact of executives cashing and corporate governance on the GEM company growth. The OLS regression results indicate that core executives cashing behavior has negative association with the GEM company growth, and the initial ownership structure is the main factor affecting the GEM company growth. The internal governance mechanism plays a weak role in closely held companies, which retarded corporate governance effectiveness in a short term. Considering the corporate lifecycle theory, it tums out that functions of independent directors and supervisory mechanisms performed well. Our study suggests that strengthening the supervision of core executives cashing behavior and optimizing the ownership structure are conducive to GEM company growth. The rigorous corporate governance compliance provides guarantees for high GEM company growth in the future.