Construction And Empirical Analysis Directorate Efficiency Evaluation Model

Management power of a corporation is typically centralized in a board of directors who establishes company policy and is elected by the stockholders. A good board structure reflects its efficiency of management in modern corporations. To increase efficiency in the management and the governance of a company, its structure is the main component. As for modern enterprise system, board has been being a research focus of finance. As a new governance mechanism, its governance efficiency, wether or not can develop effectively? Its function which it should have been?Directorate efficiency is very important for improving the corporate performance. Based on the four key indicators influencing on the directorate efficiency, an empirical research on the relationship between corporate performance and directorate efficiency for Chinese Public Company is conducted by the data from2009to2011in this paper. A measurement model for directorate efficiency is employing by means of the multivariable linear regression analysis, and the measurement results of directorate efficiency for the Chinese Public Company are obtained. By using the measurement results, a regression analysis for the relationship between the corporate performance and directorate efficiency is generated, which indicates that they are in positive correlation. Therefore, this is one way to improve the corporate performance with great the directorate efficiency for Chinese Public Company.