The Impacts Of Board Features And Ownership Concentration On Corporate Performance

With the rapid development of the economy, some of the major corporate governance issues in the major domestic and foreign listed Corporation have gradually emerged. Since the Enron, Xerox, WorldCom, Merck & Co Inc exposed a series of major accounting fraud incident, China Guangdong Pearl, minfufa, Yueda investment, tomorrow, St paishen etc, the listed companies also appeared in the major issues, which caused a serious blow to investors’confidence and destroyed the stability of the whole stock market in a certain part. The frequent accounting fraud cases make the accounting issues integrity visible. Research shows that the main reasons for fraud cases include information disclosure, corporate governance and the industry regulatory system. Since then, the issue of corporate governance has become the favorite of domestic and foreign scholars, who constantly explore and improve the corporate governance solutions. At present, capital market in China is still not perfect. Company performance is not only controlled by product market, professional manager market, property rights market and legal environment external factors, but also by the monopoly, insider control, the behavior of tunnel, the problem of corporate governance. Reasonable board of directors and the system of concentration of ownership is conductive to corporate governance structure of the staffing, scheduling duties, so as to improve the performance of the company. Due to the different time and economic environment of different scholars, uneven financial securities markets development and selected data and index of all kinds, conclusions of the study is different and even opposite. But no matter what the results of the study, they all think that corporate governance has an important impact on the performance of the company. Many scholars research and analysis on the relationship between corporate governance and corporate performance using different methods of empirical analysis from various angles. However, it is relatively rare to study a certain industry. It is well known that companies in different industries have different growth, capital structure, capital structure, profitability, and the impact on the company’s performance is also different. The construction industry, as one of the pillar industries of our national economy, has a great contribution to the economic growth and social development of our country. But in recent years, low profit, high input, high debt, capital accumulation, working not perfectly and many other problems caused heavy burden to the enterprise. Because of this, based on construction industry experience data of the listed companies, board features and ownership concentration system are of great practical significance to the impacts on corporate performance.In order to study the relationship between board features and ownership concentration system and the company performances, this article carries on from both theoretical and empirical aspects. Firstly, it is analyzed in theory based on the effect the principal agency theory, resource dependence theory and stewardship theory cause to the board of directors feature and equity concentration degree and the company’s performance. Then, combined with the construction listing Corporation status, in 2010-2014 in Shanghai and Shenzhen motherboard 53 construction listing Corporation, a total of 265 samples are for empirical research by selected 12 variables using multiple linear regression analysis. Finally, according to the empirical results, we put forward the relevant policy recommendations. The article is divided into six parts:The first part introduces the research background and significance, the literature review, the main content and methods of the research.The second part, in the premise of the principal-agent theory, resource dependence theory and stewardship theory three basic theoretical, analyzes theoretically the relationship between board features and firm performance relationship, the relationship between ownership concentration system and the company performance relationship and their synergistic effect on firm performance relationship. The third part analyse the current situation of China’s construction industry. Firstly, this chapter analyses the current situation of the development of China’s construction industry from the scale of the situation, demand situation, investment in fixed assets and profitability four aspects. Secondly, from the scale of board of directors, behavior, independence and incentive. I will analyse scale of the board of directors of a listed company in the Chinese construction industry, meetings, independence and the remuneration of directors. In the end. from the ownership concentration.1 will analyse the ownership structure of China’s construction industry.The fourth part, first of all, based on the above theoretical analysis and the present situation proposed research hypotheses; secondly, the sample selection and data is described. Thirdly, according to the existing research results, and combined with the actual needs, we will select appropriate explanatory variables, explanatory variables and control variables. Finally, this paper designs the research model.The fifth part, first of all, analyses the selected variables correlation; secondly, using spss19.0 regression model for empirical analysis, researches impact that the features of board of directors of the listed company and ownership concentration have on firm performance.The sixth part is the research conclusions and recommendations. The results show that, firstly, the size of the board of directors is not related to the performance of the company. The number of meetings of the board of directors and corporate performance is significantly negative correlation, and the board of directors meeting is just a form, which is of no significance, more attention to the establishment of mutual relations and pays more attention to the establishment of mutual relations.Board independence and corporate performance are significantly positively correlated. The higher the proportion of independent directors are, the higher the efficiency of the performance of the role of performance responsibility are. The board of directors and the company’s performance are significantly positively related, that is to say, the higher the three directors’ pay is, the better the performance of the company is, which means that the modern housekeeper in the role of pay incentives will be more diligent in their duties, as the company’s good housekeeper. Secondly, from the point of view of ownership concentration, ownership concentration and corporate performance are significantly positive correlated, that is to say, the higher the top five directors of the shareholding ratio are, the higher the company’s performance. At the same time, for most of the construction industry, there is a dominant position of the listing Corporation, but the second largest shareholder contains and check effectively the first major shareholders. Again, from the board of directors features and ownership concentration degree of synergistic effect, board size, independence, salaries and concentration degree of synergistic effect, and firm performance has significantly a positive correlation, while the board of directors cooperative effect and corporate performance is negatively related to the number of meetings and equity concentration. But the correlation is not obvious. Finally, based on the theoretical and empirical analysis of this paper, from the ownership structure, board features, executive incentives I will put forward the relevant policy recommendations to improve China’s construction industry listed Corporation governance structure.