Study On The Restriction Against The Power Of The Board Of Directors And Its Influence Over The Social Responsibility

In the field of modern corporate theory, the connection of corporate governanceand social responsibility has become the common awareness among people. As thecore part of the corporate governance, the board of directors has natural advantages inurging the corporate to conduct the social responsibility. However, corporationsusually behave poorly in taking social responsibility. The reason why cases like thisturn out to be more popular is the board of directors fails to work well. Based ontheories and related researches before and the concepts and theories introduced in thepaper, the paper conducts an empirical study to testify the relationship betweenfactors restricted the power of board of directors and corporate social responsibility,aiming at urging the corporations in China to conduct social responsibility in a betterway during the course of building the mechanism to restrict the power of the board ofdirectors.The paper mainly consists of four parts: the theory and literature review, therestrict mechanism of the power of board of directors, the empirical study on therelationship between the factors to restrict the power of the board’s of directors andthe suggestions based on the empirical study. Firstly, the paper conducts theoreticalanalysis about the concepts and theories of corporate social responsibility andrestriction of the power of board of directors. Based on stakeholder theory,principal-agent theory and power balance theory, the paper is made covering therepresentative study in related fields. Secondly, the factors which restrict the power ofthe board of directors are introduced, on which the restriction mechanism of thepower of the board of directors is built. Thirdly, the paper raises nine hypotheses andbuilds a regression model. This paper selects A stock listed company inPetrochemicals and Plastics in Shanghai and Shenzhen Stock Exchange spanningfrom2010to2012as sample to examine the model．Then the paper made theconclusions based on the empirical study. Last but not the least, considering of theresults of the empirical study made in the paper and the real condition of the corporations in China, the paper comes up with suggestions on how to encouragecorporations to take more social responsibility during the course of restricting thepower of the board of directors.