The Research On Effectiveness Of Board Of Supervisors Of The Listed Companies In China

The board of supervisors is consisted of supervisors elected by shareholder and workers congress.The function of the board of supervisors is to supervise company's daily business activities and company's financial report.Since the system of the board of supervisors has established,its effectiveness in corporate governance becomes an issue hotly debated by many scholars.As the number of listed companies in China is increasing and the scale of listed companies become lager and lager,the supervisory role of the board of supervisors can not be ignored.the board of supervisors really play its supervisory role or not,is of great significance to the protection of the interests of shareholders and to realization of the company value maximization and social effect.This paper reviews the related literature of the board of supervisors,as well as the theoretical foundation of the board of supervisors.Combing operation status quo of the board of supervisors system,the functions of the board of supervisors has been discussed.What's more,this paper establish a panel data regression model in order to analyze the relationship between several characteristics of the board of supervisors of listed companies and corporate performance,using the Shanghai Stock Exchange listed companies during 2006 to 2015 as a sample.The results come out that the board of supervisors system has a certain impact on the company's performance,but the implementation of the effect is not ideal,there are still many problems to solve.Finally,in order to continuously improve the governance condition of listed company in China,and the board of supervisors in our country can play its due role,this paper find the logic behind the result,combined with the reality of corporate governance of our country,and put forward several suggestions.