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The Study Of The Evaluation Of Board Work Performance Of Listed Companies In China Based On Firm Performance

Posted on:2010-11-11Degree:MasterType:Thesis
Country:ChinaCandidate:M QiFull Text:PDF
GTID:2189360278452128Subject:Accounting
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During the formation of modern enterprise system, as the core of corporate governance, Board of Directors is an important decision-making and supervisory body in a company. The main functions of a board are making decisions for the critical affairs, as well as supervising the management of a company. Whether the roles of the board play effectively are an important guarantee of the Corporate Governance, so how to assess the performance of the board of directors has become a key to consummate corporate governance.Operating results and the result of the Board performance have a high level of relevance, so the operating results are always the most direct reflection of the board of director's performance. It is, therefore, whether in the theory or the business there is a mistake that the performance of the Board is the same as the operating results of a business. Different from this understanding, this article believe that the performance evaluation of a Board of Directors should focus on two aspects, which contain operating performance and the acts carried out by a Board of Directors. The former is an assessment of the results of acts; the latter is concerned about the process of acts of a board of directors. The two factors complement each other and evaluate the performance of the Board of Directors. Draw on the idea of the Balanced Score card, the performance evaluation of a Board not only contains the performance of a company, but also the evaluation of internal business processes, that is, performance evaluation the of a Board of Directors. While emphasizing financial indicators, it also emphase on the positive effect of internal business processes, growth, customers and other non-financial indicators.In this paper, a theoretical and empirical research method is combining .By reviewing the research of scholars at home and abroad, we will select China listed in manufacturing company at Shanghai and Shenzhen Board as samples, which was listed before December 31, 1999 and take the 2003 to 2005 for the data window. First of all, this article will study the relationship between the performance of the board of directors and corporate operating performance from the separation of both the Board of Directors, the Board of Trustees of the scale, the proportion of independent directors of the board of directors, board of directors of several aspects. Next, try to bulid a model based on the empirical analysis results .Then, evaluate the performance of the board of directors of listed companies by this modle. Last, we will use the performance evaluation results of the Board of Trustees acts on the performance of the board of directors test the relationship between operating performance and company behavior.The results of empirical studies show that the act of the Board in a company has a positive impact on the operating performance. AS the act of the Board performance enhance, it increase gradually. In view of the current board of directors of listed companies in China is generally low performance of the acts, This article recommends that controlling a proper scale and improving the system of independent directors to improve the quality of the board of directors meeting, the Board of Directors establish a scientific system of performance evaluation and accountability mechanisms to improve several aspect.
Keywords/Search Tags:The Firm Performance, The Board performance Evaluation, The Board Work Performance, Empirical Analysis
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