The Relationship Between Board Governance And Performance In Listed China Companies

As for modern enterprise system, board has been being are search focus of financial. As a new governance mechanism, its governance efficiency, whether or not it can develop effectively? Its function which it should have been? Firstly, this research analyzes the present condition of listed company board in China. Then gives the theoretical research and experimental analyzes from the board characteristics such as board size, the proportion of independent director, board meeting frequency, duality.Paper chooses 641 listed companies as the basics amplest which firstly gives descriptive statistics analyzes, finds that the scale of the board of director and corporate performance present 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 a significant positive correlation between the proportion of independent directors and the corporate performance. 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 maybe mutual counteracted. The frequency of the board meeting is negatively correlated with firm performance.These results demonstrate that the board system of listed firm is still imperfect, most of boards just are "rubber stamp". Practice shows there is a phenomenon of "weak board" in China.For the above conclusion, this paper further proposes that the board system should be perfected and many suggestions to improve board efficiency.