Stability Of The Board Of Directors,Diversification Strategy Impact On Company Performance

In recent years,with the acceleration of economic globalization,the efficiency of corporate governance in the modern enterprise system has been improved.As an important internal control tool,the board of directors is at the core of corporate governance structure,which has important decision-making and supervision function,which is very important for the management and development of enterprises.As the most important development strategy,diversified business strategy is a kind of development model which is widely used in order to achieve the rapid development of scale expansion.Therefore,the board of directors and diversified business strategy is closely related to a certain extent,has an important influence on corporate performance.However,domestic and foreign scholars have less research on the stability of the board of directors and diversification strategy.This article is based on corporate governance of vision,make the relevant reach of the stability of the board of directors,the influence of diversification strategy and corporate performance broaden the research train of thought.This article selects 2012-2014 Shenzhen motherboard 314 a-share listed companies data in three years as the research sample,with the principal-agent theory,the modern housekeeper theory and resource dependency theory as the foundation,using the statistical software SPSS20.0 to make a reach about the relationship between the stability,diversification strategy and corporate performance,using statistical software SPSS20.0 to carry on the theoretical and empirical analysis.Studies have shown that: the chairman changes,changes in the proportion of board members,board size and corporate performance negatively correlated,that is,the more stable the board,the better the company's performance;diversification strategy and corporate performance negatively correlated,that is,the higher the level of diversification lower corporate performance,moderate regulate the relationship between the board stability and diversification strategy,will help improve corporate performance.Therefore,China's listed companies,by reducing the proportion of the fluctuating frequency change chairman and board members,select the appropriate size of the board,give full play to the decision-making and oversight functions of the Board of Directors,while the situation with their own appropriate development of diversified business strategy,to improve the company management efficiency,improve corporate performance,and promote long-term healthy development of enterprises.This research hopes to improve the governance structure of the board of directors of listed companies to improve their governance efficiency,choose their own development model and roads,to provide practical reference.