The Research On The Relationship Between Board Structure And Corporate Performance Of The Listed Companies In China

Board of director is the core component of the internal Corporate Governance, and it is an important decision-making and supervision organization. The function of board of director is very important in corporate governance, and establishing a reasonable and effective board is the key to building a modern Corporate Governance. It is the concern of domestic and abroad scholars and corporate governance organization that if board structure influences corporate performance, and there is not a unified conclusion on this subject yet. This paper firstly carries on the survey to the domestic and international research document of the relationship between board structure and corporate performance, and then carries on theoretical research and empirical analysis to the relationship between board structure and corporate performance on the basis of the research in existence.This paper selects 506 companies as the sample, which listed on Shanghai Stock before Dec.31, 2002, and examines the relationship between board character and corporate performance including board size, proportion of independent director, board leadership and board shareholdings. Through the descriptive analysis to the board characterize, board size of listed companies in our country has the downward trend; the proportion of independent directors has been increasing year by year; most companies choose the leadership structure of general manager served as director or assistant chairman of board of director; the average amount of director shareholding has the increasing trend, but the average ratio of board shareholding is still low. Through the regression analysis, we find that board size has the inverted U-curve relationship with corporate, the proportion of independent director have no significant correlation with corporate performance, duality of general manager and chairman of board is positively correlated with corporate performance, and the ratio of director shareholding is positively correlated with corporate performance, but the correlation didn't pass the statistical inspection. The result of study shows that board structure of listed company in our country plays little function in corporate governance and board structure is still needed to be improved; finally, combining the above conclusion, this paper further presents the suggestions to perfect board structure and improves board efficiency, and then improves corporate performance of the listed companies.