Study On The Effects Of Company Performance By The Board Capital In The Listed Company

Along with the social progress and the developing of economic, strengthen the corporategovernance has become a modern enterprise to the sustainable and healthy and rapid developmentthe inevitable trend and important means. Corporate governance is the key to our board ofdirectors governance, and from different angles to explore the problem of board governance is verynecessary. Board of capital is a new angle of view to the study of board governance issues.Theultimate goal of the board governance is to improve corporate performance, therefore, in this paper,we study the board capital’s impact on corporate performance problems are helpful for theoreticaland practical circles.In this paper, we composited the Agent theory and Resource dependency theory to make anew research framework on the effect of company performance by the board of directors’ capital.We hold the opinion that the board of directors’ capital influences the company performance by thevariable, for example, educational capital, specialized capital, relational capital, capital ofexperience, and reputation capital.We expect research the effect process by board functions, whichinclude supervision, provide resources and strategic decision. We want to make a clear explain onthe problem that how the board of directors’ capital impact the company performance. Accordingon this idea, we set up a research hypothesis, a model and finished the empirical test. Researchsuggests that the board of directors can exercise their job by its capital, and have effect oncorporate performance. Of course, the board of directors’ capital affect company performance alsoby some outside factors, such as the establishment of board of supervisors, managementshareholdings and so on, which have been exist in the company.We through the multivariate linear regression model to research929Shanghai a-share listedcompanies in our country’s public data, using the EXCEL software and software SPSS19.0statistics to regression analysis, the conclusion is:(1) The education capital of board has nopositive impact on the company’s current performance, but the average degree of the board ofdirectors have some influence on the company’s long-term performance.(2) Professional capital ofboard does not significantly affect corporate performance.(3) The relationship capital of board hasinfluence to corporate performance. Especially, financial relationship capital has significant effectson the company’s future performance; and the government relationship capital has impact oncompany performance in the current and future period.(4) The impact of experience capital on corporate performance was not significant, but the experience of operation and management has asignificant impact for the companies’ future performance.(5) The reputation capital of the boardhas a positive effect on corporate performance.Finally, according to the result of empirical test, from the perspective of improving corporateperformance, we put forward several proposals to the development problems of the board ofdirectors on the listed companies in China, also provides some references for practitioners. Forexample, the company should be appropriate to raise the level of the board’s education, under thesame conditions can be selected a higher degree director, what’s more is to further cultivate themembers of the board of directors; Company also should make full use of capital of professionaldirector, fully excavate directors’ potential; Encourage director to accumulate their relationscapital and improve the company’s competitive advantage; Reasonable utilization the reputationcapital of directors, allowing directors to do some part-time job, on condition that the part-timejob do not affect the normal work; Comprehensive consideration, the company also should raisecapital’s heterogeneity, such as the board of directors’ age structure, sex structure, the constitutionof the professional background and professional background, and so on.In a word, All aspectsshould be more diversified, so as to improve the comprehensive ability of the board of directors.