The Empirical Study About The Effects Of Board Characteristics On Enterprise Value Based On Life Cycle Theory

Nowadays,our country is dedicated to building enterprises that have international competitive power and have leading roles among their industries.The long-term development of a company is based on developed corporate governance,thus,how to develop the corporate governance and make it more efficient has always been a topic that researchers and people operating a company eager to discuss about.The board structure is a vital part of corporate governance,there were many researches about its effects on enterprise value,but people still haven't found the final conclusion.Thus,we need to find new perspectives to study this topic.On reviewing the existing literatures and summarizing related conclusions,we can see that about how the board characteristics affect enterprise value,there exists different point of views.Life Cycle Theory holds the opinion that at different stages,enterprises have different features and different operating goals.Based on this theory,combine the analyses of Agency Theory?Corporate Valuation Theory and Contingency Theory,this thesis thinks that corporate life cycle have impacts on corporate value?board characteristics and the relationship between them.To do the empirical analysis,this thesis uses data of A-share manufacturing listed companies of 2012-2017 and construct life cycle variable according to industry method.Descriptive statistics shows that value variables that representing earnings?cash flows and condition of assets have different variation trends among different life cycle stages.Independent-samples t test shows that the differences are significant.And then,use dummy variable to represent corporate life cycle stages and make regression analysis.The result shows that life cycle variables have significant influence on corporate value.Using the same analysis method,the thesis verifies that the referred six board characteristics are adjusted with the change of corporate life cycle.In the analysis of how board characteristics affect corporate value,first use board characteristics variables to make regression analysis,the results indicate that board characteristics have different influence on different value variables.The differences exist in both the degree of influence and influence direction.Then use the models that contain interactions of the board characteristics with life cycle variables to analysis.This analysis shows that life cycle variables have regulating effects on some of the board characteristics variables.Based on the theoretical analysis and empirical analysis,this thesis thinks that how the board characteristics affect corporate value depend on specific situations.For those board characteristics which don't have life cycle regulating effects,they may have different influence on different corporate value variables.For those board characteristics that have life cycle regulating effects,the results are more complicated.Thus,there exists dynamic adjustment of the board characteristics.When discussing how the characteristics of board of directors will affect corporate value,we should first clear and define which life cycle stage the enterprise belongs to,then we can have more specific conclusions.