Empirical Research On Power Distribution Of The Board To State Owned Enterprise Performance

The state owned enterprises are important part of the national economy,and take key responsibility in the national strategic security and the macro economic development.With the reform and opening up and the market development,the SOE governance realize the transformation from the model of "administrative governance" to"economic governance".However,most of the state owned enterprisesare government-controlled production units under the planned economy,and inevitably suffered the influence of the institutional and planning factors,there are still problems of the the single-large shareholder and soft budget constraint in the SOE governance.As the core of corporate governance,the board of directors also exist some defects such as "top decision-making,serious administration and weak independence",how to solve the contradiction between the system and behavior effectiveness of board of directors under the background of corporate governance transition,and improve enterprise performance is the focus of this paper.Furthermore,China is a traditional relationship-oriented society,enterprises form connections with other enterprises through executives which taking part-time management position in different companies.The ubiquitous "executive circle" not only promote the transmission of information and resource among enterprises,but also have important effects on the enterprise performance efficiency.In this regard,this paper use the dates of 637 Chinese state-owned listed companies from 2012-2014 as research sample,combine the corporate governance theory and social network theory,starts from the perspective of transformation of Chinese corporate governance,analyze-the internal dual power(administrative power and economic power)distribution model of the board and its evolution path,and analyze the internal and external governance mechanisms and microscopic mechanism of network structure in the process of strategic decision-making through systematically studying the effect of TMT chain network(administrative network,economic network,the whole network).In addition,according to the different level of state owned enterprises,different areas,and SOE classified governance,this paper also divided the research sample into different groups,and discuss the different role of the board of director's internal power distribution and TMT chain network on the SOE performance,breakthrough the research difficulty which only see the "circle" but not to see "network",and puts forward a set of theoretical relations and operational strategies for the above problems.Through the empirical research,we have found that there are problems of "top decision-making,serious administrative management and weak independence" in the board of directors,the government's strong interference will have significant negative effect to the enterprise development to some extent,and emphasis more economic power on the board of directors will lead to the problem of "internal control",there is a significant positive "U" relationship between the proportion of economic directors and corporate performance.Enterprises' centrality in the "whole network" and "administrative network" can significantly improve the enterprise performance,but due to the current condition that the corporate governance system is not perfect,the enterprise's position in the "economic network" is more close to the center,the more likely of internal control and conspiracy to make the operating performance descended.In the aspects of regulatory role in the network,"administrative network" centrality inhibited the negative effects of administrative-type directors on enterprise performance,and the"economic network" centrality has significantly contributed to the economic-type directors on enterprise performance,but the influence mechanism significantly different among different groups of state-owned enterprises.The innovations of this paper are as follows:(1)This paper measures the dual nature of administrative power and economic power of the SOE board for the first time,and complement them with a rigorous empirical test,which have significant meanings on uncovering the veil of the board and clarify the internal power distribution relationship;(2)This paper expand the research of previous interlock directors,and further divide the TMT chain network into three dimensions of administrative network,economic network and the whole network,which provide the key innovation value on revolving the difficulty of SOE governance and improving governance efficiency from the perspective of social network.