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Empirical Research Of Listed Companies In The ChiNext On The Relationship Between Board Of Directors’ Features And Operating Performance

Posted on:2015-02-01Degree:MasterType:Thesis
Country:ChinaCandidate:Y LiuFull Text:PDF
GTID:2309330431973103Subject:Accounting
Abstract/Summary:PDF Full Text Request
The board of directors as the core of modern corporate governance has been recognizedby scholars. It plays an important role in solving the principal-agent problems which due tothe separation of ownership and management in corporate firms. The board of directorsplays its role through the realization of two functions which are strategic decisions andsupervised administration. Strategic decisions refers to that the board collectively makesscientific decisions in relative to long-term development of firms though playing to theadvantages of each member. Supervised administration refers to that the board representsthe interests of shareholders to hire management personnels responsible for firms’ dailybusiness, at the same time, to supervise and assess mangers’ behavior. At present, therelevant laws and regulations of investors in listed companies and the securities market inour country are not perfect. In order to improve firms’ operational efficiency and perfect thestructure of corporate governance, it is particularly important to play the role of board asinternal governance mechanism.Domestic and foreign scholars have carried on in-depth researches on that the influenceof board of directors’ features on operating performance in theoretical and empirical aspects.In the corporate world, managers also make deep exploration and innovation. This paperfirstly reviews research achievements of domestic and foreign scholars, which is good forgrasping the progress of researches. Secondly, this paper summarizes related theoriessystematically, such as related theories about corporate governance, board of directors’features and evaluating corporate operating performance and so on. Thirdly, according tothe relevant analysis about the second board market and its listed companies, and bychoosing the ChiNext listed company as sample data, this paper researches on therelationship between board of directors’ features of the ChiNext listed companies andoperating performance in empirical analysis.The research found these following conclusions:there is a quadratic curve relationship between board size and operating performance,namely inverted "U" shaped relationship; There is significantly positive correlation betweenthe board stability and previous operating performance and the companies with lower boardstability in the previous year would be worse in performance during the subsequent years;There is no significant relationship between board leadership structure and operatingperformance; There is also no significant relationship between board independence andoperating performance; There is significantly negative relationship between annual board’smeeting and operating performance; There is significantly positive relationship between the following two variables and operating performance, that are shareholding ratio of boardand the total compensation of top three directors; There is significantly negative relationshipbetween the average age of board and operating performance; There is significantly positiverelationship between the male proportion of board and operating performance; But there isno significant relationship between the following two variables and operating performance,that are the educational background of chairman and the proportion of the board of directorswith master degree and above. Finally, based on analysis of the above conclusions, thispaper put forward relevant suggestions to further perfect the governance structure of board,and those suggestions are good for improving operating performance. The following aresuggestions: selecting appropriate board size and maintain its stability; Establishing theboard leadership structure with the separation of chairman and general manager; Perfectingthe system of independent directors to give full play its due role; Reasonable planning thefrequency of board meeting to improve the efficiency of board; Perfecting the incentivesystem of board; Promoting the quality of board in an all-round way.
Keywords/Search Tags:Listed companies in the ChiNext, Board of directors’ features, Operatingperformance, Empirical analysis
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