The Regulation Of Board Leadership Structure To Strategic Change And Firm Performance

In the context of globalization, business environment changes rapidly, thus the strategic change become to an inevitable problem, but as we know, the impact on business performance often adjusts by different variables. By reviewing the literature, I found that the board leadership structure may be an important regulated variable between the strategic change and corporate performance. At the same time, the regulating effect of Board leadership structure is limited to the enterprise external environment, the nature of the equity and ownership concentration. Therefore, we will discuss the regulating effect of Board leadership structure and its certain conditions dependence.SPSS18.0will be used in this paper. We focus on the manufacturing industry in Shanghai and Shenzhen A-share listed companies, and after the regression of the panel data from2005to2010, we get follow findings:firstly, strategic change has a significant negative impact on business performance. Secondly, the Board leadership structure has a significant positive relationship to the Strategic Change and Firm Performance of the Listed Manufacturing Companies. The effect of Strategic Change to Firm Performance will increase when the chairman and the manager combine together, and will decrease if not. Thirdly, the Moderating effect of Board Leadership Structure is a condition-dependent. The nature of equity and ownership concentration all play roles in the moderating effect. Specifically, state-owned enterprises have significant regulating effect of the leadership structure of the board of directors, but private enterprises are not. Moderating effect of high ownership concentration of corporate board leadership structure is significant, while the corporate regulator low ownership concentration effect is not.On the basis of the practical conclusion, we discuss the application conditions of Stewardship Theory and Agency Theory on Board of Directors Leadership Structure changes in strategic change. Specifically, we found that both Stewardship Theory and Agency Theory are condition-dependent. In terms of Chinese enterprise characteristics, the applicability of Stewardship Theory is higher than Agency Theory.