Research On The Relationship Between Board Governance Structure And Firm Performance

In the modern company and organization structure, the property rights and the right ofmanagement separation growing over company executive and shareholders of the conflictbetween agent, has been the attention by researchers. As an important part of the managementstructure, market and internal control system can help alleviate the role of these agencyproblems. In the internal control system, the board of directors has the principal and agentdouble identity, is the owner (shareholders) agent and operators (executive) client, so thecompany management is the key and core board governance. With any other group, thegovernance structure of the board of directors of the quality of the effectiveness of the board’sdecision to run, finally affects the performance of the company. This paper attempts to theboard of directors function, analyzes the function for play, what kind of board governancestructure is the most effective? What the board governance structure model is of high quality?Can the company value promotion effect? This paper based on the special situation ofChinese listed companies, in full cosideration of the board of directors of the many factorsinfluence the governance structure, under the premise of trying to using principal componentanalysis and custom index two methods to board governance structure this variablecomprehensively processes, with the two dimensions to measure the independent variables.And on this basis, combining with other control variables, from the evaluation of theperformance of the company accounting index, market index two Angle to test boardgovernance structure and performance of the correlation between, and to analyze each effectrespectively the board structure factors and promote the company value, the relationshipbetween the board of directors for the perfect governance structure provide practice test.This paper, from the structure and content on this from the structure and content isdivided into six parts: the first part is the introduction, this paper introduces the researchbackground, the paper research significance, research situation, the study frame, the methodand the basic concept definition, etc.; The second part of the literature review, the part of theboard of directors at home and abroad in recent years comb the governance structure and thecompany running efficiency literature, from the board of directors of the board of directors,the independence of the specific actions, board of directors of the board of directors, the boardof directors of the incentive stability, education background and work fixed number of year ofthe six aspects such as the board structure factors on the performance of companies toinfluence comb, and are analyzed and summarized. In the third part of comprehensive paperon the board of directors of the company governance structure performance the theoreticalanalysis of the effect, begin from the principal-agent theory, modern stewardship theory and resources dependence theory three perspective of the board of directors function, based on theanalysis on the board of directors of the governance structure of each factor to influence theperformance of companies; The fourth part of China’s capital market A shares listed companycapital market2006-2010for the sample data, combined with the above board governancestructure on the performance of the company hypothesis influence, and the principalcomponent analysis and regression analysis to the board of directors to the governancestructure of operation efficiency empirical research; The fifth part of the empirical results wasanalyzed and explained; The sixth part according to the empirical results targeted putsforward corresponding policy suggestion, and expound the outlook of the research in thispaper.