The Empirical Study On The Effection Of Governance Of The Board On Corporate Growth

The reanson for a corporate to exist is growth which must have a good system as aguarantee.Except the external conditons,perfecting a company’s interior governance ismore important to help a company to grow. As the core of the corporategovernance,the efficency of board governance is directely ralated to the performanceof the company and the interests of stakeholders, which will effects acompany’development.Therefore,this article decides to study the ralationship betweenboard governance and corporate growth,and I hope to give some beneficial advicewhich is about improving the board governance to promote company’s development.This thesis chooses the chinese A share listed companies in manufacturing industyas the object and the2008to2010annual financial data as the sample.Theindependent variables including six board governance indicators,such as boardsize,board background resource,proportion of independent directors,the number ofboard committee,leadership structure and board meetings.Based on the theoreticalanalysis,this work has a empirical study on ralationship between board governanceand enterorise growth.Three control variables are company size,financial leverage andthe actual control properties.The dependent variabel is represented by omnibusdevelopment score which is extracted from the growth rate of total assets、the mainbusiness income growth rate、earnings per share growth rate and growth rate of netprofie by factor analysis.The empirical research includs descriptive statistical analysison the board governance and multiple regression method. The empirical results are asfollows:first,the ralationship between board size and enterprise growth is positivlyrelated but nor significant;second,board background resources、the number of boardcommtttee and board meetings are significantly positive correlated with enterprisegrowth;third,the proportion of independent directors and business growth isnegatively correlated but not signifincant;fourth,syncretic leadership structure andfirm growth is significantly negatively ralated.Overall,board governance has animportant effect on the business growth,but at present there are still some problems in board governance need to be improved.Finally based on the empirical study,thisthesis gives some suggestions on board governance to promotecompany’development.