Research On The Relativity Between Legality Of Board Of Directors' Behavior And Company Performance

Board of Directors is the core of corporate governance,the characteristics and behavior of the board of directors not only directly affect the corporate governance efficiency and legitimacy of access,but also affect the sustainable growth of enterprises.Therefore,how to make the board of directors to regulate and effective has always been the focus of theory and practice.So far,the research on corporate governance in board of directors is mainly from the efficiency mechanism,based on the maximization of corporate value to maximize the performance of one-sided pursuit of growth,but ignored the process of sustainable growth of enterprises effect mechanism(legitimacy recognition)dependence.Legitimacy means that in a system of norms,values,beliefs,and definitions that is gradually formed in society,the activities of the firm are considered to be reasonable general perceptions and assumptions.The acquisition of legitimacy can help enterprises to win a positive reputation and relationship resources,thereby enhancing the performance and value of enterprises,and promote enterprise growth.The board of directors,as one of the core mechanisms of corporate governance,is the permanent authority of the company and the power center of the company.It should not only give full play to decision-making and supervisory functions,improve internal corporate governance and improve governance efficiency,Legally required to comply with the requirements of the Company Law,Securities Law,Corporate Governance Code,Articles of Association on the Board of Directors,Code of Conduct and effective and widely recognized by the Company's stakeholders.In this paper,a sample of more than 60 listed companies in Anhui and Shandong province,which are obtained by questionnaire survey,is constructed,which is composed of index system of legality index of board of directors,and the ROE was used as a measure of corporate performance.The results show that the legitimacy of the board of directors has a positive and continuous positive effect on the performance of the board of directors,and the sub-index of the board of directors has the same positive effect on the performance of the enterprise,but the board characteristic index has a positive effect on the enterprise performance.At the end of the paper,some suggestions are put forward in the paper,which can help enterprises to gain the legitimacy recognition,optimize the board structure,perfect corporate governance and achieve sustainable sustainable development whilemaintaining governance efficiency.