An Empirical Study Of The Relationship Between Board Of Directors Of Listed Companies And Company Performance

1、Research objectImprove company performance is the constant pursuit of the goal process in a company.Especially in the complex environment of economic globalization. How to make the company stay competitive in the market economy is a subject we should get to the bottom. Therefore, a successful company must not only have good internal management and operation of the order, and, a high-speed changes in the effective strain the capacity of the external environment is also necessary. Then, around the company carried out a series of operating System-in corporate governance is what we need to study the key issues. Corporate governance structure is not only the coordination of the different companies of the main internal and external stakeholders in a system between the various relationships, but also on business management and performance monitoring and control of the necessary arrangements.As a corporate governance mechanism, the board’s independence, professionalism and capacity constraints constitute an important mechanism for administration managers, the company built up the basic framework of the internal management structure. Whether board characteristics for the significant influence firm performance is the focus of this study.2、Content and significance of researchThis paper selected 1456 listed companies in Shanghai and Shenzhen stock markets as samples. And the study period was from 2007 to 2009. By reading relevant literature, this paper summarized the three characteristics of the board of directors.They are independent characteristics, professional characteristics and behavior characteristics.This study assumes reference to the conclusions of other scholars.This article explained variable is the company performance. Characteristics of explanatory variables is the Board of Directors. Control variables are firm size and financial leverage. In this paper, Eviews5 software descripts statistical analysis and regression analysis.The significance of this paper is that the conclusion of the study can be used as reference.At the same time, this comprehensive and systematic study is universal significance.3、The innovationFirstly, this paper use the descriptive statistical analysis method, not only the qualitative analysis.Secondly, in this paper, the correlation between board characteristics and corporate performance is studied from the independence of the board characteristics, professional characteristics and behavior characteristics.4、ConclusionsThis article examines the hypothesis by single argument regression analysis. And the results are:in case the other variables are constant,no correlation is between proportion of independent directors and company performance; chairman and CEO separation has a positive correlation with corporate performance; board size and firm performance exists between inverted U-curve was established; no correlation is between numbers of Committee established and corporate performance; board meetings of listed companies has a negative correlation with corporate performance; members of the stake has a positive correlation with corporate performance.The result of the robust test is the same as the model.Test results show the effectiveness of the proposed model.For the regression results, we propose to strengthen the board functions, powers and responsibilities of independent directors a clear benefit, the Executive Chairman and CEO of two grade separation, select the appropriate size of the board and reduce the emphasis on the role of a special committee meeting of the Board over the specific method to optimize Characteristics of the board of directors, board structure to improve and enhance the efficiency of the Board to improve corporate performance and thus achieve the purpose.5、Inadequate and outlookArticle did not fully consider the external environment, the impact on corporate governance. And accounting data will have a "delay" effect. This article does not consider all factors, only the selected company size, asset-liability ratio as control variables. In addition to a quantitative variable, there are still some difficult to quantify the qualitative characteristics. For these variables, this paper does not take into account, this is the limitations of this article.Although the split share structure reform has been initially completed, but the existence of listed companies, the lack of governance will take time to slowly rehabilitated. Therefore, the board of directors of listed companies in the sample size and lack of adequate time series long enough to sample the object in this empirical study concluded itself has some limitations and one-sidedness, pending further research and development.This article discusses the characteristics of the board of listed companies and corporate performance relationship, the future could be explored in the context of different industries and different market environment, both are relevant or related degree, dynamic dialectical view of board characteristics and corporate performance relationship.