Effectiveness Of The Board Of Directors Of Listed Companies

During the history of the system of board of directors in China, its effectiveness has beenwidely concerned by enterprises and scholars. Chinese social environment, marketenvironment and economic development has its own characteristics. Study on the board ofdirectors effectiveness from a view of financial fraud has not been taken seriously, whichleads to the short of the efficient information of this specific area. Throughout the domesticand international perspective actually, a large number of listing Corporation financial scandalsof the company and persistantly changing market performance make the public opinion of thecompanies turn negative. Although the government published considerable amount ofregulations, the accuracy of the financial statement, and the credit of the managers are kept ina judgment of unreliable.Under the backgroud of Chinese rules and regulations, the paper integrates the domesticand international theories about the management of the company, the effectiveness of theboard of directors, and the information of the public companies which accepted penalty forthe financial fraud, in order to make an effective research of the effectiveness of the board ofdirectors. Based on the research of the relationship between the effectivenss of the board ofdirectors and the financial fraud, the paper examines the effectiveness of supervision of thedomestic board of directors, and accordingly comes up with reasonable suggestions.Selected out of45listing Corporation had the financial fraud as a sample. Choose thesame industry, the same year, the same size of the company and match them up with thesimilar companies which have qualified financial to make the comparison. The correlation ofthe variables, descriptive analysis was conducted on two groups of Sample Firms.ThroughLogistic regression model to analyze the data.Through Logistic regression model to analyze the data, which mainly consists of thecorrelation of the variables, and the descriptive analysis which was conducted on twogroups of Sample Firms.