Ceo Of Powers Of Empirical Research On The Impact Of Enterprise Value

With the fast development of economic reform in China, companies' corporate governance capacity has developed. The research on CEO power has long been a hot topic in western academic world. But in China, research in this field started quite late. This paper is about CEO power, its elements and the impact of those elements on corporate performance. Since China's equity market has taken the non-tradable shares reform and experienced the subprime crisis, our research seems valuable.This paper reviewed literature and then come to the theoretical hypothesis. We believe that CEO duality, foreign shares, large size of Board, high percentage of independent directors, high percentage of CEO pay per that of senior executives, high percentage of CEO share, high percentage of the share of the second to the tenth shareholders, with foreign shareholders, private ownership, better educational background will improve the performance of the company. Based on the data of listed companies (from 2006 to 2009), we do the empirical study in three ways:1) with all companies in a whole; 2) grouping the companies by its ownership properties (state-owned companies and private companies); 3)grouping the companies by size (big size and small size). Then we come to the conclusion that CEO duality decreases company's efficiency in state-owned enterprises but it does not significantly affect the performance of private enterprises; CEO age are positively related to the performance of private enterprises and we do not see that kind of relationship in state-owned enterprise. CEO hold high percentage of shares will improve company's performance in state-owned companies but has no significant effect on private enterprises. In private enterprises, percentage of shares of the top one shareholder has the U-form relationship with corporate' performance. But in state-owned corporate, it has no significant relationship with companies' performance.Finally, the paper reached the following policy recommendations:state-owned enterprises generally should better not let its CEO be the chairman on the same time; private enterprises can choose a more mature and experienced CEO; raise the share percentage of the second to the tenth shareholders will improve the enterprises' performance; in state-owned enterprises, to improve the proportion of CEO share ownership is an effective incentives.