A Study On The Influence Of Board Governance Of The Listed Companies On Company Performance

Board governance is the core of corporate governance, which is directly related to the interests of the shareholders and company performance. Along with the rapid development of China's capital market, the board governance has become a hot issue in the field of theory and practice in our country.From the early scholars' theoretical research on board governance to modern scholars' empirical research by means of applying mathematical models, from influential factors of board governance to the impacts on company performance, the extent and depth of research both expand, but most results take one or several factors as content, and so far, the research on the influence of board governance on company performance do not have final conclusions.This article used the listed companies in Inner Mongolia as the research samples. Based on the principal-agent theory, the modern stewardship theory and the resource dependence theory, this article analyzed the internal influence factors of the board governance in the listed company from the aspects of the scale of the board, the leadership of the board, the formation of professional committee, the proportion of board shareholding, board meetings and the proportion of independent directors. Also, this article used the public data of 15 a-share companies in Inner Mongolia in 2007-2009, and conducted a descriptive analysis of 6 items of quantifiable board governance indexes.Based on the above, this article researched the influence of board governance of the listed companies on company performance by means of correlation analysis and regression analysis, and further built a multiple linear regression model. The empirical results show that there are direct close links between influence factors of board governance and company performance of listed companies in Inner Mongolia. Board scale and company performance had significant positive correlation; board leadership and company performance had negative correlation but did not pass the test of significance; professional committees and company performance had significant positive correlation; the proportion of board shareholding and company performance had weak positive correlation, did not pass the test of significance; Board meetings and company performance had significant negative correlation; the proportion of independent directors and company performance had weak positive correlation. Through the rational allocation of factors of board governance, both board governance and company performance were improved.Finally, referring to the problems of corporate governance reflected by empirical analysis, this article put forward some relevant recommendations to improve the level of board governance of listed companies in Inner Mongolia, such as expanding board scale, choosing separation of two parts of board leadership, improving the professional committee, inspiring the directors holding shares and improve the system of independent directors and so on.