Research Of The Cross Directors’ Influence To Listed Companies’ Tunneling And Corporate Value, Performance

Abstract:Economic behavior is influenced by the structure of social relations, scholars also apply the theory in corporate governance research. Interlocking directors as a special architecture model of the board of directors has received the attention of Chinese scholars in recent years. Most scholars believe that interlocking directors is a "special relationship" between the corporations and the external environment. The relationship can help companies reduce the uncertainty of access to resources, which is conducive to the normal development of enterprises. The author found a more specific phenomenon of interlocking directorates:cross directorates. Based on the theory of interlocking directorates, this paper discussed the cross directorates’influence on the corporation’s tunneling, corporate value and corporate performance.Because no scholar has found and study the phenomenon of cross directors, firstly, this paper collate and review the literature about interlocking directors; Secondly, we chose the corporations which have the phenomenon of cross directors in A-share listed companies, Using a statistical approach to show these companies’Asset size, the gearing ratio, number of directors, board independence, company performance, company value and so on; Finally, by constructing panel data, using the OLS regression to test the main issues discussed in this paper.The main conclusions of this paper include:(1) Cross-directors of listed companies is a common phenomenon;(2) Compared with other listed companies, companies which have the phenomenon of cross directors are harder to emptied, supporting the supervisory control theory;(3) Compared with other listed companies, companies which have the phenomenon of cross directors have better ROA, ROE, EPS, supporting the resource dependence theory.