An Empirical Research On The Medicine Governance Of Board Of Directors Of Listed Company And Corporate Performance

By corporate governance, we mean a kind of institutional framework composed of the owners, the board of directors and the senior executive staff, i.e. the superior managers. This kind of structure forms certain balanced relationship between three described above. Through this structure, the owners trust their own assets to the board of directors of the company; and the board of directors are the policy-making body of company, having the power to employ, to reward, to punish and to dismiss their employees; the senior executives are employed by the board of directors, making up the executive body under the leadership of board of directors, managing the enterprises within the range of mandate of the board of directors. (Wu Jinglian,1994).Because of the two layers of entrustment in the management of the company, namely, the Agent relationship between the shareholders and the board of directors, and the clientage between the board and the managers, the board of directors being agents, as well as clients, the board of directors occupies the pivot status in company's administration structure. So both the property right structure and the development strategy of company rest on the boards of directors eventually. Because of key status of the board, the mend of the internal structure and the operation of the board, and the improvement of the company's performance, become the crucial task of setting up an effective administration structure of board of directors.This paper herein adopts the combined methods of demonstration research and criterion research, with the demonstration research predominated. We will take the 91 medicine A-share listed company (2004) in our country as samples, mainly focus on three respects of the management of the board of directors of medicine of listed company in our country: namely the management of the internal structure of board; the management of the operation of the board; the management of the board and the performance of the company. This will be an omni-directional and omni-perspective study of the state of the medicine listed company in our country. Our aim is to benefit the management of the board of the medicine listed-company and the improvement of the performance of the company...