The Research On The Impact Of Control Configuration To Enterprise Executive’s Corruption

After the 18 th National Congress of the Communist Party of China, the anti-corruption canpaign come to a new climax in our country, more and more corruption cases of enterises exposed in the public. The number of culled excutives, the range that corruption cases touched upon and the amounts of corruption cases involoved really were a shock. The serious problems that excutives corruption bring not only effect the enterises themselves, but also effect the cuontry and the society. The corruption of excutives in our country has been very serious and has caused wide attention of social all circles. However, the academic study of executive corrruption is rare and most of them focused more on descriptive analysis, lacking analysis of how exective corruption behavior take place. It is important to analyse the factors of how executive corruption happen with the popuse of preventing exectuives corruption cases effectively.Based on the exectuive corruption cases disclosed publicly in 2007——2014, the text start from the root of corruption ——power, analyse how executives corruption take place, and then from the point of control configuration, discussing how it effect the excutive corruption. In the modern enterprise, the enterprise control configuration is mainly focused on three subjects: the shareholders, the board of directors and the managers. The empirical results show that:(1)From the point of shareholders, the propotion of the largest shareholder and the enterprise executive’s corruption have significantly negative correlation, it means that the higher propotion of the largest shareholder owed, the possibility of exectives corruption will be higher. Generally speaking, when the shareholders own the control power of the company, the higher propotion of the largest shareholder owed, the shareholder will have more power to run the company and supervise behaviorsof managerial personnel.(2)From the directors board, the number of the board of directors and executives of corruption have a significantly positive correlation, that is because the board size is too large to causeing "free-rider" phenomenon instead, leading to the function of the board to word ineffectively. The propotion of the independent director and the executives of corruption have a positive correlation, which rased a question to the current independent director system to some extent.In our country, the independent directors tend to be selected by the enterprises themselves.So in order to have a long term reappointment, the independent directors will let executives corruption behavior slide, even give support to them. The propotion of directors which the largest shareholder control and the executives of corruption have significantly negative correlation,for the higher propotion it owed,the more it can protect its benefit. The propotion of directors which the excutives control and the executives of corruption have a significantly positive correlation.(3)From the point of the executive, the more power executives have, the executives corruption is more likely to happen.In this paper, the research shows that corporate executives corruption is closely related to the control configuration, optimizing control configuration mode is likely to improve enterprise executives corruption phenomeno. This paper supplements and deepens the studies of the executives corruption, offerinf new evidence to how to control executives corruption effectively.