An Empirical Research On Board, Ownership Structure And Chinese Corporate Performance

Management power of a corporation is typically centralized in a Board of Director and Ownership Structure. The Board of Directors establishes company policy and is elected by the stockholders, and the arrangement of Ownership Structure is a foundation of frame of corporate governance. A good board structure and reasonable Ownership Structure reflects its efficiency of management in modern corporation.Does a board structure really have an influence function to the Corporate Performance? Scholars and business management organizations in many countries have always continually focused it in many countries. There are already some research achievements in foreign country. By comparing between China and the developed country firms, there are differences in many aspects, such as business environment and regulation of law. Does it really have an influence to the Corporate Performance? This paper quotes 292 companies as examples, which started public offering in a stock market before Dec 31, 1995 in China, use it's data from 2001 to 2004, and shows the relationship between the structure of boards, Ownership Structure and the Corporate Performance. Concerning about the character variable of board and ownership adequately, this paper set up 22 regressive models and quote novelty "alliance governance" variable in it. Some new conclusions are obtained, For example: the state equity ratio is strongly related to the firm performance with cubic curve; the relationship between the corporative equity ration and the Corporate Performance is square curve shaped by up " U " .We think that above-mentioned studies will result in the guidance value in some degree. Some suggestions are brought forward in order to choose the more realized mode of Corporate Performance in China. Additionally, the deficiency and intending direction in this paper are proposed.