Comparative Research On Board Characteristics And Corporate Performance Of State-Owned And Private Companies In China

The Board of Directors as the core of corporate governance is an important decision making and oversight bodies.The Board s directors of the company system will establish an important guarantee. Therefore, establish a reasonable and scientific Board of Directors will be the requirements of inevitable modern corporate governance. In recent years scholars focused on board characteristics on the influence of corporate performance. Because the structure of property rights is a key factor in corporate governance, this article has been selected State-owned companies and private listed which have different property structure as research objects in order to reflect the characteristics of our Board of Directors on the company's performance more accurately, hoping to provides reference for the two categories of enterprises of the Board of Directors.First, the article describes background, significance, content, methods, ideas and the most innovation points.Second, collate relevant literature on the characteristics of Board of Directors and corporate performance. Third, Theoretical analysis and propose hypothesis.Fourth, regression analysis ROE which is the metrics of corporate performance with Chairmen of time,meetings,directors reward and the proportion of independent directors,by the data of non-financial state-owned enterprises and private enterprises in Shanghai and Shenzhen from 2006-2008.The empirical results suggest that the effect of Board of Directors on corporate performance in State-owned enterprises is significantly higher than private enterprises. In the State-owned enterprises, there is a significant positive impact of chairmen time on company performance, there is a significant negative impact of the Board of Directors meetings on company performance, director compensation and corporate performance don't have a dependency, there is a significant negative impact of independent on the company performances.The relationships of Board characteristics and corporate performance of private enterprise isn't obvious.Last but not the least, Give the recommendations of the Board governance such as work time of Chairmen and the number of meetings but also incentive mechanism,market and employ mechanism of the independent directors.