Research On Relativity Of The Characteristic Of Board Of Directors And Company's Achievement Of Listed Company

Almost all of the corporate governance literatures indicate that board of directors plays a pivotal in reducing conflicts between management and stockholders due to the separation of ownership and control, especially for the public firms. For the listed companies in China, there is not an effective merger & acquisition market due to the illiquid of government shares and legal shares, the law and regulation are not enough and clear to protect the interest of the minority investors and there is short of incentive schemes for managers, so when there is short of external controlling and incentive mechanism, board of directors which is the internal controlling mechanism plays vital role in corporate governance.This paper researches the relevance of the characteristic of board of directors and company's performance. Firstly, this article introduces the research significance, the domestic and foreign research situation, the research content and so on. Secondly, the article recommends relevant theories of the board of directors and corporate performance. And then, propose the research assumption of the paper on the basis of theoretical research. Finally, utilize 2003-2005 annual report data of 54 listed company of Jiangsu Province to research, The article gives the research and experimental analyzes from the board characteristics such as board size, the proportion of independent director , the frequency of the board meeting , the levels of board interlocks. The performance index is EPS . The research carries on the statistics through SPSS, and examines the assumption. Through the result, put forward some suggestion to board of director governance.This paper uses SPSS software to research the problem and discover some results: The relation between board size and EPS is remarkable but actually U conic section relations. When the quantity is about 9, the performance is best. The proportion of independent director, board meeting frequency, the reward of directors, the levels of board interlocks and the corporate performance is remarkable relevance. The leading structure of the board of directors is not remarkable relevance with corporate performance.Finally, according to the results, Jiangsu province should be clear about the core status of the board of directors in company governance, strengthen directors longtime prompting as soon as possible, and provide the good work environments for the independent directors.