The Empirical Research About The Influence That Board Characteristics Of The Listed Companies On The GEM Make On The Firm Performance

On October23,2009, the first28listed companies on GEM appeared on the Shenzhen securities exchange market for trading. After about10years of ups and downs, the Growth Enterprise Market (GEM) came into function. As an important complement of the Main Board Market, Growth Enterprise Market is aiming at providing services to the small and medium-sized enterprises, which undergo their initial or growth stages. Most of these companies have a promising future. However, there are many problems in the listed companies on GEM. Their governance structure may not be that perfect, and they may not have a steady performance. This thesis selects the listed companies on GEM as samples, and makes an empirical research on how the board characteristics influence firm performance. Then this thesis puts forward some suggestions on the development of the board of directors, which may provide some empirical data on improving the governance structure of listed companies on GEM.The main components of this thesis are as follows:Part one is the introduction. This part mainly introduces the background, significance, research method and components of the paper. Then this thesis takes a retrospect on the current home and abroad research achievement in this field, and makes a simple comment on them. Finally, the text illustrates the contribution and limitation.Part two is the theoretical basis. This part illustrates the board characteristics and their manifestation, as well as the theoretical basis on how board characteristics make influence on firm’s performance, which are the basis of the following research hypothesis and empirical analysis.Part three is the research design. Firstly, on the basis of agency costs theory, resource dependence theory and new economic growth theory, together with the characteristics of the listed companies on GEM, this thesis analyses the influence mechanism, through which each board characteristic makes an impact on the firm’s performance, then puts forward the hypothesis. Secondly, the paper illustrates the sample selection and data resources. Thirdly, the text introduces the variables definition (dependent variable, independent variables and control variables). Finally, the text introduces the model used in the analysis.Part four is the empirical analysis. This part provides the descriptive statistics analysis, correlation analysis and multiple regression analysis. The paper introduces the current state of the board of directors of listed companies on GEM, and explores the influence of board characteristics make on firm performance.Part five is the conclusion. The thesis draws the conclusions of the empirical analysis; then puts forward related policies and suggestions according to the conclusions.Using empirical methods and taking annual report from2009to2011as the data source, this thesis makes regression analysis and comes to the following conclusions:board size of listed companies on GEM presents significant negative correlation with firm performance, the duality of CEO and chairman presents significant positive correlation with firm performance, independent directors’rate presents no-significant correlation with firm performance. The meeting frequency of board of listed companies on GEM presents significant negative correlation with firm performance. Board incentive characteristics, namely directors’salvage and stock rates directors hold, present significant positive correlation with firm performance. Board human characteristics have relationship with firm performance, that is, directors’education level presents significant positive correlation with firm performance, while directors’ age presents no-significant correlation with firm performance.Different from former studies, this thesis selects the emerging market-GEM to develop the research. At the same time, the text bases on the new economic growth theory and takes the board human characteristics into consideration. So it has some practical significance to explore the relationship between board characteristics and firm performance of listed companies on GEM.