Abstract: A sound governance structure of family business is an important means to strengthen its economic vitality and to improve its operating performance; and the operating performance is the most effective and most direct reflection to see whether the governance structure of a family business is sound or not. By selecting 108 family firms listed in Shanghai and Shenzhen stock markets in 2009 as the research samples, this paper conducts an empirical analysis of the relationship between their governance structure and their operating performance. The results show that there is a positive correlation between the number of annual board meetings, the annual income of general managers and the operating performance of listed family firms; however, there is a significant negative correlation between the general asset-liability ratio and the operating performance.

Key words: listed family business; governance structure; operating performance