Research On Determinants Of Board Characteristics Of Listed Companies

Throughout the corporate governance framework, the board of directors is in the core link, is the key of the corporate governance, the modern corporate governance structure of the core issue is the establishment of a standardized, high-quality, efficient company's board of directors. Compared with their personal participation in the management, shareholders will give the control over decision-making right to their agent, you can more efficiently control and supervise managers'decision-making. This article is concerned the determinants of board characteristics.It is different to the efficiency of Board operation, such as whether and how the board characteristics affect the performance of the company's or management's behavior. Compared to the large number of foreign scholars of the theoretical and empirical studies, the study of the determinants of board characteristics has just begun.The foundation of this article is the system reviews the West experience literature about the determinants of board characteristics, embarks from our country's actual problem, studies the determinants of the two most chief characteristics, namely board size and board composition This article has selected 765 listed companies from 2002 to 2007,and to be listed 4590 sampled data, from the scope and complexity of operations, the supervision costs and benefits, bargaining impact and the shareholder structure four aspects has carried on systematic theoretical and empirical analysis to the determinants of board size and board composition of the listed company in our country. We carry on the simple relevant analysis and the multiple regression analysis by the SPSS15.0 statistical analysis software for these four kinds of factors of the board size and the board composition.The results showed that company size, the number of holding subsidiaries, earnings per share, the nature of stockholder's rights, the proportion of nation-owned shares has a significant positive correlation to board size; time to market, Tobin Q, the largest shareholding ratio has a significant negative correlation to board size. Showing the expansion of company size and increase in the number of main sectors, the board of directors of listed companies in China will also increase the scale, while the size of the board of directors of listed sensitive enough reaction market time, the board size of listed companies in China will increase along with the market time has the reduction tendency; due to the high-growth of the company's regulatory costs are higher, and in order to faster decision-making, high-growth companies will have smaller boards of directors. Shareholding structure has a important effect to the board size, Board of directors forming process in Our country has the shareholder and the management, the first major stockholder and other major stockholders has the relations which bargains back and forth with each other in China's process of forming process of Board of directors, the parties have to fight for control of the board of directors, and ultimately the parties will reach checks and balances between a right. Company size, the number of holding subsidiaries, has a significant positive correlation to board composition. CEO tenure has a significant negative correlation to board composition. Showing that when the company expanded the size and operating scope, the number of independent directors will increase to strengthen the supervision of business activities in China's listed company, but the independence of the board of directors has a insensitive response; the excessively long of CEO tenure will suppress independent enhancement of the board.