Study On Effect Of Firm Performance And Board Structure Of Listed Company In China

Management power of a corporation is typically centralized in a Board of Directors who establishes company policy and is elected by the stockholders. A good board structure reflects its efficiency of management in Modem Corporation. To increase efficiency in the management and the governance of a company, its structure is the main component.Does a board structure really have an influence function to the firm performance? Scholars and business management organizations in many countries have always continually focused it in many countries. How to establish a better and reliable board structure? Until now, it is the hot point of research and study in the business environment. There are already some research achievements in foreign country. By Comparing between China and the U.S firms, there are differences in many aspects, such as business environment, regulation of law and the ownership structure. Before 2001,there are almost not independent directors in listed company.In our country, Stock Market A and the companies are basic on specialized regulation and laws background and in the era when the economic environment's been reforming. This specialization characterized its own certainty for the structure of Board in China firms. This article quotes electronics and telecommunication companies as examples, which started public offering in A stock market before Dec 31, 1997, and shows the relationship between the structure of boards and the companies achievement through research, that including the size of Board, structure of board, leader group and the company achievementFrom the point of view by analyzing the whole research, in our country, there is no big change for the size of Board in recent years, the ratio of independent of Board director has been increasing year by year, the job position for Chairman of Board and CEO was getting to separated. From this research, it's not so clear to see the positive relation within the size of Board, the proportion of independent Board of directors and the index f (management achievement index), as well as the relation between the separated position setting for Chairman of Board and CEO and index f (management achievement index).