Empirical Research On The Relationship Between Firm Performance And Board Structure Of Chinese Public Company

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.board of directors governance and corporate performance. This article is based on four aspects. The results show that the scale of the board of directors and corporate performance presents distinct converse shape U. When the scale of the board of directors achieves nine or ten people in Chinese listed companies, the corporate performance will reach the max. We consider that nine people maybe the optimum number for the scale of board of directors. There is no different performance between the listed companies that have and have no independent directors, and the independent directors haven't brought their active function yet. The condition of whether the chairman of board of directors acts as general manager has no influence on Chinese listed companies in some degree, and their positive and negative function may be mutual counteracted.