The Empirical Study On The Relationship Between The Board Characteristics And Performance In High-Tech Companies

Since the 1990s, with the development of economic lobalization, the problem of corporate governance attracts worldwide attention, corporate governance has become one of the most important factors to enhance their core competitiveness. As the link between the shareholder and management, the board is in the center position of the corporate governance. This position decides that improveing the board quality becomes the key task to build effective structure of corporate govenance. All of these is ultimately upon the internal structure of the board.This paper will take High-tech companies in our country as sample, the data come from their yearly financial roports of 2007 and 2008. We analyze empirically the relationship between board characteristics(size, independence, encouragement, two-level state, audit committee). This research herein combine methods of demonstration and criterion research. Also, the method of factor analysis is used for the company consolidated performance.The results show that the board size and firm performance present distinct shape U. The board independence is not correlated with firm performance. There is a positively correlated relationship between encouragement of the board and firm performance. Duality is positively correlated with firm performace. Audit committee is not correlated with firm performance. According to the conclusions above, we further propose that the board system should be perfected and give some suggestions to improve board efficiency.