A Study On The Board Governance Of The Listed Corporate In Gansu

As the key mechanism of the corporate governance, the board governance has become the focal point in the theoretical and practical field. At home, scholars have been engaged in a great deal of empirical research into the relationship between the board governance and firm performance, and put forward some helpful suggestions.How is the board governance of the listed corporate in Gansu getting on in the special environment of Northwest? According to Annual Report of 19 listed corporates in Gansu which was published before July 4,2007, this thesis attempts to carry out descriptive statistical analysis of the board governance from the year 2004 to 2006, and the analysis involves the ownership structure, board members, board composition and board behaviors. In order to make the quantitative analysis and empirical study, we chose five governance characteristic variables: board size, proportion of independent directors, leadership structures of board, the stock proportion of board members and board meeting frequency, and then employ statistical software SPSS 11.5 to explore the effect which the board governance has on firm performance. From the detailed analysis, we draw the conclusions as the following:1. The ownership structureState-run stock ownership holds a relatively dominant position in the listed corporate. But the trend can be changed with the whole circulation of stock.2. Board membersFrom the year 2004 to 2006, the number of board members arranges from 8 to 13. The listed corporate which has 9 board members ranks first and the number of board members in more than 60% of listed corporates is odd.3. Board compositionProportion of Independent directors in the listed corporate is low and lacking in entrepreneur type. It is abnormal that the average number and proportion of independent directors obviously decrease with asset increasing when the asset is over 5,000,000,000 yuan. Independent directors are paid less average allowance than that of other regions.4. Board behaviorsThe salary composition of the listed corporate is relatively simple, and directors have a small amount of shares on the average. In addition, over 50% of directors do not get the allowance from the corporate. The rate of attendance at meeting is high.5. The relationship between governance characteristic and firm performanceAs the empirical research shows, board size, proportion of independent directors and annual board meeting frequency are negatively correlated with firm performance; leadership structures of board and the stock proportion of board members are positively correlated with firm performance.In conclusion, this thesis puts forward suggestions to improve the board governance in accordance with the problems of the listed corporate of Gansu.