The Study On The Impact Of Interlocking Directors To China’s Listing Corporation

Board is an important part of the listed corporation, so how to do a good job in corporattione, the board also played a crucial role, therefore the whole structure of the board will impact listed corporation directly,even it can have a direct impact on the performance and operation of the company.Once the unreasonable structure of board comes which will have a negative effect on the development of the company in the future. If the listed corporations want to obtain the good performance and the relative stability of the future development, the reasonable structure of board is the priority,now with the development of society, the interlocking directorates appears, it becomes the universal phenomenon. So the research for the interlocking, which extended to the structure of the listed corporation, how to improve the performance of listed corporation plays more and more important role.Firstly the interlocking concepts and relevant theory and the introduction of interlocking are clear. Secondly, through the analysis and the descriptive statistics on the status quo of listed corporation,1750sample data and5listed corporation are selected between2008to2012years. Then we will analyze the interlocking directors which how to affect the performance of the company.This article mainly starts from the equipment manufacturing industry, variable for the performance of the company in this paper we choose earning rate the net assets and per share earning ratio; the variable for the interlocking directors,we choose the number of interlocking directors, the proportion of the interlocking directors,the number in part-time of interlocking directors. In this paper,we can find out there is a negative correlation between the number of interlocking directors and corporate performance, the number in part-time of interlocking directors is negatively related to the corporate performance,the proportion of interlocking directors is negatively related to corporate performancefinally, according to the number of interlocking directors, the proportion of interlocking directors and the number in part-time of interlocking directors we put forward relevant measures and suggestions to enhance the corporate performance.