The Empirical Study Of The Relationship Between Board Characteristic Of Listed Companies And Company Performance Based On The Nature Of Ownership

With the establishment of modern enterprise system, the separation of ownership and operating rights produces a series of corporate governance issues, particularly the agency problem between shareholders and managers and large shareholders occupying the interests of minority shareholders. As an endogenous system of corporate governance, board is considered to solve these two problems effectively. Major international organizations are actively exploring what kind of board characteristics is effective. Scholars have carried out many studies about how board characteristics affect company performance. However, there is no specific research on board characteristics of the different ownership company affects company performance. Because of China’s special national conditions, there are many different ownership companies in China. It is significance to analyze the relationship between board characteristics and company performance and improve the board governance targeted.The article divides sample companies into the central company, local company, private company, foreign and Hong Kong, Macao and Taiwan-funded company based on the theory of property and economy composition of the capital of the relative controller in the company. This paper firstly describes the structural characteristics of the different ownership company and how board characteristics effects company performance. Then this paper establishes research models of the four different ownership companies. Finally, the paper puts forward relevant policy recommendations based on the research conclusions.The study results indicate that the overall of board characteristics impacting on company performance varies from high to low followed by private company, local company, foreign and Hong Kong, Macao and Taiwan-funded company, the central company. The proportion of independent directors is positively related to company performance in the private companies, while it’s not related to company performance in the central company, the local company, foreign and Hong Kong, Macao and Taiwan-funded company. The frequency of board meetings is not related to company performance in the central company, the local company, foreign and Hong Kong, Macao and Taiwan-funded company, while it is positively related to company performance in the private company. There has negative correlation between the Board shareholding and corporate performance in the central company, the private company, foreign and Hong Kong, Macao and Taiwan-funded company, while The Board shareholding is positively related to corporate performance in the local company. Board size is positively related to corporate performance in the local company, the private company, while it is positively related to corporate performance in the central company and it is not related to corporate performance in the foreign and Hong Kong, Macao and Taiwan -funded company. The number of professional committees is not related to company performance in the central and private company, while it is negative correlation in local company and it is positive correlation in foreign and Hong Kong, Macao and Taiwan-funded company. It’s visible that board characteristics of different ownership companies affecting company performance is different. It is extremely important to improve company performance by improving board governance based on company’s ownership.