Empirical Study On The Relationship Between Corporate Performance And Administration Structure Of Board Of Directors Of Agricultural Listed Companies In China

As one of the internal core mechanisms of corporate governance, the board of directors has always been considered an important decision-making and oversight body in the course of corporate administration. Many scholars all over the world have always focused on if the board can have an influence on the corporate performance.This thesis selects agricultural listed companies in China as its study object and combines the theory and practice to achieve the following objectives: finding appropriate performance-evaluating indicators on the basis of understanding the development status quo of agricultural listed companies in China; doing descriptive analysis and regression analysis to quantify the relationship between corporate performance and administration structure of the board for agricultural listed companies in China; proposing some policy recommendations to boost the board governance structure and business performance of Chinese agricultural listed companies.The thesis uses the theoretical research method and empirical research method.Firstly,adopting the theoretical research method, we analyzes related conception and theories about the relationship between board characteristics and corporate performance in detail.Then we choose agricultural a-share listed companies as our study object.The data comes from their yearly financial reports of 2007-2009. We use factor analysis to acquire a comprehensive financial index F to evaluate the corporate performance for agricultural listed companies, and establish a panel data model to analyze empirically the relationship between board characteristics (board size,the rate of independent directors,the condition of whether the chairman of board of directors also acts as the general manager, the board members'salary , the share proportions of the board members and the frequency of the board meeting) and corporate performance.The results show that the board size is negatively related to the corporate performance significantly.The rate of independent directors is negatively related to the corporate performance significantly.The condition of whether the chairman of board of directors also acts as the general manager is positively related to the corporate performance significantly.The board members'salary is negatively related to the corporate performance significantly.The share proportions of the board members is not related to the corporate performance significantly.The frequency of the board meeting is positively related to the corporate performance significantly. Finally, the thesis puts forward some policy suggestions about how to perfect the corporate governance of agricultural listed companies from the board level according to the empirical conclusions obtained,including properly reducing the size of the board, continuing to improve the independent director system, establishing appropriate board leadership structure to meet the development of the company, developing effective incentive system to embrave directors and improving the system of board meetings.