The Research On Relation Between The Construction Characters Of Listed Company's Board Governance And Performance

The board of director is the core system for company governance,it is most important for company's performance,and the construction of board director is very important for its working efficient or badly.This paper researched the relation between the construction characters of listed company's board governance and performance with SSE A-share listed company.There are six sections in this paper.The first section outlined the main frame of this research and proposed the research propose after analyzed the relative research and its results of foreign and internal researchers.The second section find theoretic support for this research by learned and analyzed some main relative theories of corporate governance. The third section analyzed the theoretic relations between the construction characters of listed company's board governance and performance deeply.The fourth section,firstly classified the samples—Listed Company according to their industry and their Final Controller,then researched the tendency of relations between Listed Company's director board constructional characters(such as director board relative size,the rate of independent directors,the duality of board director and CEO,the rate of Financial and Economic directors,the rate of Technological directors,education of directors,age of directors)and the performance,proposed the hypotheses at last.The fifth section,firstly selected the samples and data,defined and described the variables,established the research model,then researched relation between the construction characters of listed company's board governance and performance by the established model,and analyzed the results.The sixth section made summery and suggested some worthwhile relative region for this research.The approaches of research in this paper as following:it began with theory analysis, after that,depicted the basic tendency of relation between director board's constructional characters and company performance by analysis the validated data(333 Listed company's 982 sample data which included three years from 2003 to 2005) in MS Excel program and made assumptions according to the basic tendency,next,made depictive statistical analysis by SPSS program and established two multivariate regression model to research the relations between director board's characters and company performance.The results of this research show that:the Listed Company's director board relative size is negative correlative with the company performance,on the contrary the other character variables of director board,such as the rate of financial and economic directors,the rate of technological directors,and so on,is different according to industry or final controller, some is negative correlative with the company performance,some is positive,some is not relevant.The results of all above implicate that the Listed-Company board of director system is imperfect and it does not active to guarantee and improve the company performance efficiently.At the same time,the result show that the Listed-Company's director board efficiency is influenced significantly by the industry and the final controller of Listed-Company.In order to improve the Listed-Company's performance,we should try to do something to improve the board of director's construction,at the same time,we should pay enough attention to the industry and final controller of Listed-Company.