Research On The Relevance Between Board Features And Growth Of The Listed Companies

In today’s economy and society,as an important subject of economic growth and development,the company’s development is inseparable from good corporate governance. Shareholders, the Board and the Supervisory Board are collectively known as the “three shares”. They are the main battlefield of corporate governance activities. The Board is the most important positions where shareholders express their will. Therefore, the most intense conflict in governance of listed companies is bound to be reflected by the board. As the core of the corporate governance, it is directely ralated to the performance of the company and the interests of stakeholders, which will effects the development of a company. However, some questions of a listed company board system will affect the company’s growth and development. This brings the company a great deal of risk. For example, Some members of the Board of listed companies who are low-quality and short-sighted misbehave for their own selfish interests. They hype insider trading about asset restructuring or sell assets or invest casually. The end result is a board pocketed, harming the interests of minority shareholders, damaging to the company’s long-term development, ledding to the company’s main business continues to shrink and facing the risk of being lost or ST. Chunhui shares and Sihuan biological are typical in recent two years. Therefore, with the continuous development of China’s listed companies, the research on the relevance listed between corporate governance and economic growth is necessary.First, this paper introduces the background and significance 、research status at home and abroad、research methods and research framework of the article. Then defines the concept of board features and the company’s growth. Secondly combeding the principal – agent theory, then putting forward the hypothesis of this paper. Thirdly, establishing models for empirical analysis and obtaining empirical results.Finally, making several advices of improving governance of the board in listed companies according to the empirical results as well as our country. In this paper, the research object is IT listed companies in the Main Board listed on the Shanghai Stock Exchange and Main Board and GEM listed on the Shenzhen Stock Exchange. This paper collected these companies’ datas of board characteristic in 2011-2013 and 13 kinds of financial indicators which are required to calculate comprehensive index of growth. And the comprehensive index is used to evaluate the company’s growth. This paper uses multiple linear regression to test if board size、the proportion of women directors、director of education、shareholding proportion of directors、social background resources of board of IT listed companies in Main Board and GEM exist a linear relationship with the company’s growth and if the linear relationship is significant.The results show that board size of our IT listed companies in Main Board and the company’s growth is negatively correlated,the proportion of women directors and the company’s growth is negatively correlated,director of education and the company’s growth is positively correlated,shareholding proportion of directors and the company’s growth is negatively correlated,social background resources of board and the company’s growth is positively correlated,the proportion of women directors of our IT listed companies in GEM and the company’s growth is negatively correlated,social background resources of board and the company’s growth is positively correlated, and other three characteristics of our IT listed companies in GEM do not exist relationship with the company’s growth. According to industry status andregression analysis, this paper presents some of the following suggestions: regulate board size reasonably; optimize the sex ratio of board members; improve quality level of board members; controlling stake of directors; enrich social background resources of board.