Study On The System Of The Board Of Directors In Companies In China

Corporate governance appearing in the 1980's has quickly become a hot issue that is researched in the firm theory and modern enterprise system area in the world, That the arrangement of the system of corporate governance is reasonable or not is regarded as a most important determinant which influences corporate performance.The reform of the state owned companies in China has experienced several stages, for example, giving up the right and interests, putting the companies out to contract and setting up the system of modern enterprise. In the process of the reform people realized that the core of the reform lies in two factors: one is creating a justify environment for the market competition; the other is establishing scientific corporate governance structure on the base of seperating government and enterprise and defining property right clearly. Especially in 1999 Chinese Communist Party convoked the fifteenth conference and it put forward that corporate system is one kind of efficient organizing forms of modern enterprise system and corpotate structure is the core of corporate system. That symbolized the reform of our country would enter a new phase of system innovation. Under this background corporate governance becomes an important and hot issue of research on enterprise reform recently.The principle of modern corporate governance is changing the traditional thinking style of owner paramountcy from single governance to commom governance. The core of commom governance is to insure that every property right owner has the equal opportunity to distribute the ownership of enterprise through the arrangement of corporate system and to restrict the conduct of every property right owner based on the mechanism of mutual supervision. The pattern of commom governance includes two collateral mechanisms: the board of directors and supervisory committee. Under this pattern the system of the board should be arranged specially in order to ensure the realization of the target of corporate governance. So the theme of this dissertation is the question of the board of directors in Chinese companies. That is, researching how to improve corporate governance structure through the arrangement of the system of the board of directors to provide theoretical support for the reform of corporate governance and to promote the healthy and continuous development of Chinese firms.Based on several correlative theories such as economics, management, new institutions economics, information economics and econometrics, the facts and problems of the arrangement of board of directors in Chinese companies are dissected and some statistical methods such as main factor and liner regression are used to study the relation between variables of the board and corporate performance. The dissertation analyses the effects of the board of directors on corporate performance in detail and the relation between the system of the board and corporate performance in different economic areas. Finally, on the basis of comparision of the arrangement of the system of the board in foreign listed company the factors that influence the board performing well and advice that helps to improve the system of the board are discussed.The dissertation includes nine chapters. Chapter one, two and three, which are the background of theoretical and empirical analysis, describe correlative theory and characteristic of corporate governance, including the important significance of corporate governance, the relationship between corporate governance, corporate management, the board of directors, et al.Chapter four, five and six analyse the facts of the system of the board in China on the aspects of the choice of the directors and the size, structure, function and restriction of the board. And then on the sample of listed companies empirical methods are used to test the effects of above factors on corporate performance. The result shows that the board of the Chinese company doesn't work well and has not significant influence on corporate performance. Finally the background and function and validity of independent director system are analysed emphatically.Chapter seven tries to find some rules of the system of the board by comparision of several models of the arrangement of the system of the board in foreign firms.Chapter eight, nine analyse the influent factors of the board and put forward some systematic suggests about the policies.