The Empirical Research On The Relationship Between The Characteristics Of The Board And Growth Ability Of Listed Companies

Listed companies play an irreplaceable role in organizing production, relieving the employment and promoting the development of the national economy. But some listed companies can’t develop well because of low financing capacity and low ability to resist risks, as well as corporate governance structure is imperfect, thus affecting China’s stock market and the national economy. Being the core and the hub of the corporate governance mechanism, the Board of Directors has influence on the growth of listed companies. Most documents have focused on the relationship of the characteristics of the board and the corporate performance. However, operating performance is a static index, it can only reflecting the past and the financial situation. The value of the company depends largely on future profitability. In this paper, the topic is the relationship between the characteristics of the board and the growth of listed companies. It is conductive to predict the dynamic development and can reflect the value-added capabilities of corporations in the next period of time. Therefore, this paper has significance both in theoretical and practical aspects. Firstly, I review the concept of growth, and then looks back relational documents to pave the way for the theoretical foundation in the later chapters. Secondly, this paper divides listed companies into two groups and proposes hypotheses, and then set up model and draws empirical results. Both the duality of the chairman and CEO and the stake of the board are significantly positive related to the growth, the setting of professional committees is significantly negatively related to the growth, both the board size and the ratio of independent directors are positively related to the growth but not significant, the board meeting is negatively related to the growth but not significant. Finally, this paper provides some suggestions to complete board governance mechanism based on the former study and China’s national conditions. Hope this paper can do something to further consummate the governance of the board and to promote company’s growth.