Empirical Research On The Influence Of Board Characteristics To The Corporate Performance Of Chinese Foreign Equity Joint Listing Corporation

As the core part of corporate governance mechanism,the board of directors has two effects,one is the shareholder's agent,the other is the principal of managers.In general,the board of directors is the bridge and link between the shareholders and the managers,plays a role that coordinates conflict of interest between the shareholders and the managers.Therefore,the effective role of the board of directors playing in corporate governance,is important guarantee for improving the efficiency of corporate governance.In recent years,along with the board of directors governance problems emerged,the effects of board characteristics on firm performance is always a hot topic for theoretical and industrial circles.Relativing to other common Chinese listing Corporation,the composition of the board of directors and shareholders of Sino foreign joint venture co listing Corporation is different.It is to join the foreign shareholders,the board of directors structure is more complicated,board governance has more challenge.Therefore,this paper studies the relationship between the Sino foreign joint venture co listing Corporation board characteristics and corporate performance,seeks to improve the board of directors governance structure,provides the reference for the practice of enterprises.This article first to reviewed the relationship between board characteristics and corporate performance according to domestic and foreign research literature,then drawing on existing research results,analysis the intrinsic relationship between between board characteristics and corporate performance theoretically.In a ddition,basing in limited joint stock listing Corporation that list Shanghai,Shenzhen as research sample,the sthdy analysises the governance situation of Sino foreign joint venture co listing Corporation's board of directors,provides the reference for improving the structure of the board of directors.Five aspects of board features are the composition of the board,board member,board structure,board of directors and the board of directors incentive behavior.In the empirical part,the study puts forward the hypothesis,set up the theoretical analysis model on the basis of the perspective of theoretical analysis based on board characteristics influence the performance of the company's.Then the study conducts multiple regression analysis based on the panel data using Eviews software.In the model the paper take the annual statistical data from 2008 to 2012 of Sino foreign joint venture colisting Corporation as research samples.The dependent variable is the comprehensive performance score by using the factor analysis method to determine.Variables are the board size,proportion of independent directors,the proportion of foreign directors,Whether chairman and CEO two duty syncretic,the number of board meeting.The control variables are firm size,proportion of the first big shareholder.Finally,the study get five empirical results.The first one is there is not significant correlation between size the size of board of directors and firm performance.The second one is the proportion of independent directors has a positive effect on firm performance,but the positive effect is very weak.The third one is there is positive correlation between foreign directors and corporate performance.The fourth one is there is positive correlation between the two positions and the chairman of the company and the CEO and corporate performance.The last one is the number of meetings show a weak positive correlation on the company performance.Finally,basing on the empirical results and the development present situation of the limited joint stock listing Corporation board,the study proposed four suggestions to consummate the Sino foreign joint venture Co.,the board of directors of listing Corporation governance structure and improve the effectiveness of the board of directors.The first one is to begin the improvement of independent directors system,to improve the independence of independent directors.The second one is to adjustment of foreign directors appropriately.The third one is to continue to carry out two separation leadership structure between the chairman and CEO.The last one is to improve the efficiency of board meeting.