Research On Board Effectiveness Based On Multi-agents Cooperation Model

As decision institution of corporation, Board of directors function as decisionand supervision role and evaluate the managers’ performance. Whether it functionwell or not is the key factor that the company can sustain its development and protectits shareholders’ benefits, and most importantly it has a lot of influence onperformance of company. So, it is necessary to search for the factors that influence theeffectiveness of board to encourage members of boards, improve the structure ofboards, promote sustainable development of company and achieve profit maximize ofprofit-relative members. In addition, now many researches only regard board ofdirectors as black box and directly measure the influence that characteristic of boardhas on the company. However, this method ignore what the board does and how itfunctions and it also doesn’t explore the effectiveness of board and its factors thatinfluence its function. In order to discover how the board functions, we have to godeeply into the black box of boards. So it can be understood that how the members’behaviors in the board affect the effectiveness of boards. Therefore, it is important forus to study the members’behaviors in the board of directors.Based on principle-agent theory and papers on the members’ behaviors in theboard, the characteristic of boards and the effectiveness of boards, this paper firstlyredefines the boards’ behaviors, the characteristic of boards and the effectiveness ofboards. The boards’ behaviors include directors’ cooperation behaviors and leadingbehaviors’ style of boards which conversely influences directors’ cooperationbehaviors. In addition, directors’ cooperation behaviors are not only responsibilitynorm of members among board of directors and system provision, but also are droveby interactive behaviors of members among board of directors. The characteristic ofboards include the constitution of boards,the leading structure of boards and the scaleof boards. The effectiveness of boards is defined as the service and control role ofboards that correspond to directors’ role behaviors expectation. Secondly, to beconvenient, this paper chooses the efficient index of boards and establishes theevaluating index system that includes the boards’ behaviors index and thecharacteristic index of boards. Among them, the boards’ behaviors index includesdirectors’ cooperation behaviors index and leading behaviors’ style index of boards;the characteristic index of boards includes the constitution index of boards,theleading structure index of boards and the scale index of boards. Next, this paper makes use of multi-agents cooperation model and improve it and we also obtainparameter that can explain interactive behaviors of members among board of directors.The theoretical meaning of the parameter is Pearson Correlation Coefficient onProduction; the economical meaning of the parameter is Correlation Coefficient ondirectors’ role behaviors expectation in the board. Then, this paper makes use ofprivately owned enterprises as data sample to positively study370privately ownedenterprises in China lined in A share based on Probit model. Lastly, this paper shows:institutional provision of boards can promote the effectiveness of boards that includesservice role performance and control role performance; directors’ leading behaviorsonly influence control role performance of boards; diversity of members in theboards makes service role performance and control role performance of boards moresignificant and scale of boards has weakly influence on control role performance ofboards; the positive results of this paper also correspond to the explanation ofmulti-agent cooperation model.