The Pilot Of The Board Of Directors Of Central Enterprises, Agency Cost And Corporate Governance Efficienc

The board of directors is the core of corporate governance and an inexhaustible driving force for the continuous development and growth of enterprises.In order to build a modern enterprise system,form an internal governance environment of mutual checks and balances,and achieve long-term development,in 2004 the SASAC announced the pilot of the board of directors.The independence of the board of directors and the level of the board of directors to govern the company are the key points where the corporate governance mechanism of the company plays a substantive role,if the company's board of directors can not play a substantive role,then it is bound to affect the long-term development of the enterprise,so whether the setting of the board of directors is standardized and reasonable is of great importance to the efficiency of corporate governance.Based on this research background,this paper analyzes the impact of the board of directors pilot on the agency cost of listed central enterprises and its economic effects.The longitudinal case study method is used to analyze the board structure,agency costs and corporate governance efficiency of the pilot enterprise Inner Mongolia First Machine before and after the pilot.The results show that the board of directors pilot reduces the cost of two types of agency,strengthens the supervision effect of the board of directors on the management,and weakens the encroachment effect of the major shareholders on the small and medium-sized shareholders;Further research found that the cost of two types of agencies will have an impact on the efficiency of corporate governance,that is,the efficiency of corporate governance will increase with the reduction of the cost of the two types of agents.This paper explains the governance effect of the board of directors from different perspectives such as the principal-agent theory and the information asymmetry theory,and also provides a case basis for the positive results of the pilot of the board of directors of central enterprises,which is of great significance for further deepening the reform of state-owned enterprises.