Research On The Influence Of Board Secretary’s Financial Experience On The Value Of The Company

With the rapid development of science and technology,competition has become more fierce,the internal and external environments the company is facing have become complex and changeable.This has brought development opportunities and also brought great challenges to all walks of life.How to grasp the opportunities and promote the company’s value is something that every company attaches great importance to.Hambrick and Mason’s "Upper Echelon Theory" proposed in 1984 provided great support for the research of executives.As the key human resources of the company,senior executives hold the key information of the company,have major decision making power and control rights,and lead the development direction of the company.Therefore,they have great influence on the improvement of the company’s value.As an important part of corporate governance,the secretary of the board plays an important role in listed companies.After the "Company Law" implemented in 2006 formally established the senior executive status of the board secretary,the community and the capital market are increasingly concerned with the board secretaries occupational group.As the only executive who needs to be accredited,the board secretaries’ importance and professionalism are self-evident.Responsible for the company’s information disclosure and coordinating the relationship between the company and investors are the two most important duties of the secretary of the board.Some securities laws and regulations also regulate the qualifications of the secretary of the board and require that the secretary of the board must have corresponding working experience in the finance,audit and investment fields,and the current board secretaries of listed companies are more and more frequently held by people with financial experience or by the CFO.This article starts from this status quo and uses the SSE and SZSE A-shares listed companies from 2007 to 2016 as the object to study the influence of the board secretary’s financial experience on the company’s value.The results of the study show that the board secretary who have financial experience can better perform his duties,thereby reducing the internal and external information asymmetry of the company and further enhancing the company’s value.To further study whether the influence of the board secretary’s financial experience on the company’s value will change if the degree of asymmetric information is not the same,research shows that the higherinstitutional investor shareholding ratio,the weaker positive influence of the board secretary’s financial experience on the company’s value.Moreover,compared with the companies audited by the "big-four accounting firms",the impact of the financial experience of the board of directors on the value of the company is more significant in the sample of companies audited by the "non-big-four accounting firms".The research perspective of this article is relatively new,because through the combing of the background features of executives and corporate value literature,it is found that the executives targeted in previous studies are generally referred to as the chairman,general manager,director,or senior management team.There is few separate study of the background characteristics of the board secretary and the company’s value,so the study in this paper not only enriches the literature in the theoretical field of upper echelons,extends the study of the economic consequences of the characteristics of the board secretaries,but also provides the policy reference of establishment and soundness of the board secretary system,and provides a theoretical basis for the decision of the listed company to employ board secretary.Therefor,this artic has a strong theoretical and practical value.