| With the development of economy and opening-up, the enterprises in Socialist Market Economic will face to harder competition. Therefore, it is important that improving their production and operation efficiency to enforce competitiveness for the harder competition. As a core component of the internal corporate governance, board of directors has a great effect on the production and operation. Especially for the high-tech enterprises, they need to do more effective in resource management, production and operation because of the needs of innovation, the competitive environment and the characteristics of large input, hot competition, high risk and revenue. Board of directors must services for this.From the view of corporate governance, this research systemic discusses the relationship between board structure and corporate technical efficiency. Based on the analysis of theory and technical efficiency which is measured by DEA of data from 153 listed high-tech enterprises in the period from 2002 to 2005, this research conducts an empirical research on the relationship between board structure and technical efficiency. The purposes are to find out their relationship and which kind of board structure could be better to firm technical efficiency. According to this research, it is found that a significant association between board structure and firm technical efficiency. The board size has the inverted U-curve relationship with firm technical efficiency; it means that an appropriate board size (neither too large nor too small) is better to firm efficiency. The proportion of independent director have a negatively correlation with firm technical efficiency, that means too many independent directors could lead to low efficiency. Duality of general manager and chairman of board is positively correlated with technical efficiency. On the other words, the advantage of pluralism is more than its counterpart.Therefore, advices on improving efficiency by optimize board structure are put forward. Firstly, enhance the power of board of directors. Secondly, control the size and component of board of directors. Thirdly, strengthen the functions of independent directors and improve incentive and restriction mechanism. |
