Study On Correlation Between Structure Of Board Of Directors And Performance Evaluation From Trade Subsector

Since 1990', the global economy grows rapidly and scale of business is promoting. Competitions among corporations are harder and harder. So Corporate governance, one of the most important things of a company is getting more and more attention by some experts and directors. As a very central part of Corporate governance, governance of board of directors becomes a popular issue which rise the scholars and official's interest. Making corporate governance appropriately is one of the basic and useful methods to increase the quality of corporation, fulfill capital market development. Then analyzing the correlation between structure of board of directors and corporation's performance is prevalent in academy.I intend to investigate the correlation between structure of board of directors and corporate governance performance , in order to estimate whether corporate governance of Trade subsector of Shanghai Stock Exchange(SSE) and ShenZhen Stock Exchange(SZSE) is efficient. In this paper, I try to study correlation between inner structure of board of director and corporate governance performance, on the assumption that outer conditions of board of director are invariable.It compares domestic and international practice of governance of board of directors basing on theory of structure of board of directors and performance evaluation. and make a empirical study with samples from Trade subsector of SSE and SZSE. The results of empirical study shows that there is no evidence which could prove existence of correlation between governance of board of directors and corporation performance. Then this paper explains possible reasons which cause the situation and gives some suggestion.