Empirical Research On Interlocking Directorate And Corporate Performance In Enterprise Group Of The Pearl River Delta

Interlocking directorate in enterprise has been widely noticed by academic circles at home and abroad. Overseas scholars in different domain researched interlocking directorate from different angles. The interlocking directorate in Chinese company has become generalization. However, discuss about interlocking directorate between domestic scholars is a little and quantitative empirical study also is a few. Therefore, from the point of interlocking directorate in group, this paper focuses on the affection of internal interlocking directorate of a company to the company's performance.On the basis of previous scholars' research results and combining this paper's research design, this paper mainly uses empirical study after constructing research frame and hypotheses. Through choosing dates of listed companies in Shanghai and Shenzhen and using SPSS to analyzes date and hypothesis-testing, this paper's hypotheses are classified to three groups, nine hypotheses, empirical research is done surrounding the relationship between quantities of listed companies' interlocking directorate, net size of interlocking directorate, the net core of interlocking directorate and company's performance, relationship between quantities of listed companies' interlocking directorate, net size of interlocking directorate, the net core of interlocking directorate and company stock ownership structure and status of two positions. Empirical testing results show that four hypotheses in five hypotheses aren't supported. Research results indicate that in the enterprise group of the pearl river delta, (1) the correlation between correlative variables of interlocking directorate and the first major shareholders-owned proportions is positive , centralized ownership structure helps net between enterprises of interlocking directorate exerting strategic role; (2) the status of two positions isn't the important factor which affects interlocking directorate and company's performance; (3) the research which focuses on listed sample dates of subsidiaries indicates that interlocking directorate is positive for company management and company's performance improving. The research which concentrates on listed sample dates of parent company shows that interlocking directorate doesn't affect company's performance strongly. The function of interlocking directorate in parent company is more to balance management power in the company and control and harmonize relationship between companies in enterprise group.