A Study Of Listed Companies’ Relationship Of Board Capital,Nature Of Property Right And Corporate Performance

China is in a special period of transition economies. It’s with Chineseharacteristics that stated-owned enterprises accounted for the vast majority amonghe listed companies. With the completion of many state-owned enterprises joint-stockeform, the phenomenon of “the state advances as the private sector recedes” is risinghile the phenomenon of “the state deteriorates as the private advances” is falling orhe contrary. There is a huge difference between the state-owned and non state-ownedn the strategic choice, mode of operation as well as corporate governance, resultingn different business performance. As the core of corporate governance, board ofirectors plays an extremely important role in the construction of the company systemnd the corporate governance practice. Board of directors’ decision-making efficiencylso directly determines corporate performance and the strategic development.hether the board can fully play its part depends on its ability to perform theirunction of supervision, provision of resources and strategic consulting. While to aarge extent, the boards’ ability determines whether a director is able to perform itsunctions.The abilities of the board, including knowledge, experience, skills, andocial networks. From the perspective of resource dependence, board capital can beegarded as the board of directors’ human capital and social capital. In the past studyf board, scholars often considered the board composition, board size, proportion ofndependent directors, board meetings frequency, and rarely involve the ability of thendividual director. From the resource dependence perspective, this article is to studyhe relationship of board and corporate performance, and to enrich the study of boardapital domestic.From the perspective of the board human capital and social capital, this article is exploratory analysis of the impact mechanism of China’s board capital of business on firm performance. And China2007-2010Shanghai and Shenzhen300index oflisted companies are selected as a sample, and use multiple linear regression analysis,and select the average age of directors, the directors’ education level, as well as theheterogeneity of the board as the board human capital, while select the proportion ofinterlocking directors and political relevance of the board as the board social capital toinvestigate the impact of board capital on firm performance. And then use principalcomponent analysis to pinch each dimension of the board capital into the board capitalintegrated indicators. And then introduce the nature of property rights to analyze theimpact of board capital on firm performance in China’s enterprises.The empirical results show that:(1) The average age of directors is negativelyrelated to corporate performance. The board education level and board heterogeneityboth have significant positive relationship with corporate performance;(2) Theproportion of interlocking directors also has significant positive relationship withcorporate performance, and the political relevance of the board is positively related tocorporate performance, but not significant;(3) Board capital integrated indicator hassignificant positive relationship with corporate performance, and board capital hasmore impact on corporate performance in non state-owned enterprises than instate-owned enterprises.On the basis of the results of empirical research, the paper provides constructiverecommendations as a reference of China’s state-owned enterprises and nonstate-owned enterprises to construct board and enhance the ability of board directors.