A Study On The Relationship Between The Board Informal Hierachy And Financial Performance In The State-owned Listed Companies

:Nowadays, reform of state-owned enterprise has developed to the governance of the board of directors.The problem of board governance has been a hot spots that is increasingly concerned in our state-owned enterprise reform.Some scholars has done the research of the relationship between the board formal structure or the demographics of directors and the company performance.However,the process of the interaction among the board is complex.Directors with similar characteristics of basic structures may make different dicisions through different interactions,which indicates that there exists a invisible power influencing the dicisions of the board and then affecting fianancial performances.The paper chooses state-owned enterprises as samples and uses them to emprically study the effect of the interactions among directors on financial performance and the variation of the relationship with the adoption of manbipulation variables in the perspective of the board informal hierachy.The paper is carried on from four aspects:(1)The measurement of the board informal hierachy with the adoption of Gini coefficient model;(2)The test of the relationship between board informal hierachy and financial performance;(3)The test of the relationship between board informal hierachy and financial performance under the influence of manipulation variables,including the mearsurement of whether the director chairman occupy the highest level board informal hierachy and the mearsurement of the differences of the constitution of the board;(4)The robustness test.The paper establishes a regression model and uses SPSS19.0to test the sample.The results indicate:(1)The board informal hierachy can promote financial performance positively.During the restructuring process of state-owned enterprises,the listed ones should take the constitution of the board into considerratin when recruiting directors,which can help form certain differences among their influences.Thus, the board informal hierachy could be more clear.(2)The ralationship between the board informal hierachy and financial performance is not statistically significant because the board chairman does not occupy the highest level of the informal hierachy in most state-owned companies.(3)The positive relationship between the board informal hierachy and financial performance could be stronger when the differences among the directors are smaller,which demonstrates that the marginal effect of the board informal hierachy on financial performance decreases.