Corporation governance, trust and performance: An empirical study on Fujian private-owned business

In this paper we discuss the relationship of the corporation governance, the trust and the performance of the private-owned business. Theoretically, the performance of private-owed business is mainly influenced by its ability to absorb the exterior human resource, which is highly related to its corporation governance. Using the data from the investigation on over 100 private-owned business and enterprise in Fujian province we do a empirical research. The results show that introduction of the exterior manager of the private-owned business doesn't mean to transfer and give up the control power of the enterprise; the authorization and trust to the manager given by the enterprise do have some relations with the enterprise's innovation ability, but we still can not judge the direction of the relationships is positive or negative; although the introduction of the exterior manager is not good for the performance, but the authorization and trust to the manager can help improving the performance; the scale of the enterprise has the negative relation with the enterprise's performance; the difference in the final control power distribution doesn't affect the profit of the enterprise.