A Relationship Study On Characteristics Of Board Of Directors And Company Performance Based On Stock Equity Structure

The stock equity structure decides shareholder's constitution and decision-making, thus it has the influence to the board of directors' candidates and the efficiency, then affects manager . Finally these mutual functions and influence obtain the synthesis in company performance. The arrangement of stock equity structure influence board of directors structure and system , then influence company performance. At the same time, the board of directors structure and system arrangement are reflected by characteristics of board of directors that can make quantity description to the variable of the board of directors.This article is based on corporate governance environment in our country .It proposes the analysis frame that is "stock equity structure—characteristics of board of directors- - company performance" , mainly replied two important questions, which one is that how the stock equity structure have influence to the characteristics of board of directors , the other is the relations between characteristics of board of directors and the company performance .The empirical study bout manufacturing company from 2001 to 2004 , this article discovered the stock equity structure has the important influence to the characteristics of board of directors. The stock concentration degree and board of directors scale are inverse correlation, state-owned stock proportion and the board of directors scale are being connected; The state-owned stock proportion and two duties gather are inverse correlation, the legal person stock proportion and two duties gather are inverse correlation. The stock concentration degree and independent director proportion are inverse correlation, but introducing control variable, it does not have the statistical significance. Above showing that stock equity structure have the influence to the characteristics of board of directors that contain the board of directors scale, the board of directors constitution and the board of directors leadership structure , simultaneously also fully explained that in our country the board of directors forming process has the shareholder and the management level, the first major stockholder and other major stockholders bargain. This article research also indicated that the board of directors scale and the company performance do not have the remarkable relevance. The independent director proportion and the company performance is being connected, two duties gather and the company performance do not have the remarkable relevance. The independent director proportion and the stock concentration degree mutually affect company performance. Above explained that these characteristics of board of directors are not the primary factor of influence of company performance. The independent director plays a certain positive role to enhance the company performance in our country .