The Relation Between The Characteristics Of Director Board And The Corporate Performance

Director board is the core issue of inner corporate governance,it establishes corporate policy and is elected by the stockholders. A good-operating director board reflects its efficiency of management in modern corporation,then improve the corporate performance.Then what kind of characteristics of director board can enhance its effciency , to improve the corporate performance?Many scholars and business management organizations in many countries have always continually focused it. There are already some achievements in foreign countries.Presently, many researches aimed at the relation between characteristics of director board and corporate performance.The characteristics of director board include the structure of director board,behavior of directors, the frequency of director board meeting, salaries of the directors got, average age of directors, ect.This thesis quotes 533 companies as examples ,and searches their datum from 2001 to 2005.Then it analyzes the relation between the characteistics of director board and corporate performace.On the basis of former studies,we put six assumptions and then test them.The study manifests major conclusions as follows:significantly negative relevance between the dual roles of chairman of director board who is also the CEO and the corporate performance; significantly negative relevance between the frequency of director board meeting and the corprate performance; significantly positive relevance between the salaries of the directors got and the corprate performance; significantly positive relevance between the average age of directors and corporate performance;but not enough evidence to prove that the scale of director board is negative related with corporate performance;not enough evidence to prove that the scale of independent directors is positive related with corporate performance.We think that above-mentioned studies will result in the guidance value in some degree. Some suggestions are brought forward in order to improve the director board efficiency ,hense corporate performance in China.