The Influence Of The Informal Hierarchy Of The Board Of Directors On The Polarization Of Group Decisions

The board of directors is an important decision-making institution in the governance structure,and its internal informal hierarchy based on respect for differences will affect the results and efficiency of decision-making.Although there are many research literature on the board of directors of informal hierarchy,but they are informal hierarchy is generally believed that the board will provide an effective channels of communication within the members,can promote the transmission of information and communication,and thus produce better decisions effect and corporate performance,less literature involves the level difference is extreme effect on group decision behavior.This paper aims to examine whether and how the informal hierarchy of the board of directors influences the polarization of group decision-making.Based on the data of A-share listed companies with mergers and acquisitions in 2008-2016 and the M&A experience of board members in 2004-2016,this paper bases on the relationship between the informal level of the board and the group decision based on the relationship contract theory and organizational hierarchy theory.The relationship between the two is studied,and the role of Confucian culture and the size of the board of directors is examined.This paper finds that:(1)there is a positive correlation between the informal hierarchy of the board of directors and the polarization of group decision-making.The higher the definition of the informal hierarchy of the board of directors,the higher the polarization of group decision-making.(2)the Confucian culture has a moderating effect on the correlation between the informal hierarchy of the board of directors and the polarization of group decision-making.(3)the size of the board of directors also plays a moderating role in the relationship between the informal level of the board of directors and the polarization of group decision making.That is to say,the larger the board of directors is,the weaker the positive influence of the clarity of the informal level of the board of directors on the polarization of group decision making.Innovation point of this article is introduced in the study of governance a basic group decision bias behavior,analyzed the informal hierarchy of the board of directors and the clear degree of directors make decisions in the group decision process of polarization degree and the effect of deep into the effect on group decision behavior of a more detailed level,informal hierarchy of the decision making process for the board of directors and the effects of the mechanism to find a new Angle and direction.Secondly,from the perspective of the informal hierarchy structure of the hidden by the board of directors to interpret the director in the process of group decision behavior as a result,abandon the past research on the informal hierarchy of the interpretation of the effective channels of communication and information flow,focusing on implicit level differences between the director's role in the process of group decision,the polarization degree of group decision to indirectly reflect the effect on group decision by the board of directors of the board of directors of informal level.Finally,this article will Confucian culture as a moderator variable,to explore the situation in China,influenced by Confucian culture under the influence of different level,informal hierarchy the influence of the polarization of group decision-making,the board of directors from a unique perspective of Confucian culture to further explore the internal decision-making mechanism of the board of directors,enrich the informal level by the board of directors of the related research.But this article also has the insufficiency.A regulating variable is the Confucian culture,this paper USES the listed companies registered with the distance between the recent a Confucius temple as a Confucian culture affect the measurement of size is not very accurate,but also influenced by Confucian culture deeper region,which is mainly composed of China are mainly distributed in east Asia,so Confucian culture research has relatively limited in scope,but can be as a reference,the enterprise should be based on the region in various areas of the world cultural system of general application,and explore its regulating effect.