Research On The Impact Of CEO Characteristics And Board Characteristics On The Stock Performance Of Listed Companie

Under the current situation of COVID-19,downward pressure on the global economy is increasing,and enterprises,as the main body of the market economy,are faced with complex and volatile domestic and international situations and market environment.They should attach great importance to internal governance and promote the modernization of national governance system and governance capacity from a micro perspective.Zhou Xiaochuan,former president of the People’s Bank of China,pointed out in his article on Corporate Governance and Financial Stability that some companies,banks and their financial institutions have serious governance problems and a lack of effective internal checks and balances,which has led to the aggravation of financial risks.For example,we know familiar Luckin coffee,Yin Guang Xia,Lan Tian shares,Enron listed companies have serious financial fraud and other corporate governance problems,but only through can whitewash financial statements indicators to study corporate governance efficiency,there is a certain lag and one-sided,therefore,focus on listed companies internal governance structure,analysis of executives impact on corporate governance is more appropriate.As the core of the management decisions,CEO has the information about the operation and plays a pivotal role in the formulation and execution of the shareholders and management of the company,both the principal and the agent of the company,and the board function will be influenced by its characteristics.Therefore,this paper studies the influence of CEO characteristics,board characteristics and company stock performance,and takes the board characteristics as a regulatory variable to explore the regulatory mechanism of CEO characteristics on company stock performance.In this paper,five CEO characteristics are the tenure,age,education,duality and political association,As well as the size of the board,the proportion of independent directors,the age of directors,and the gender ratio,With 1,005 companies listed on A-shares in Shanghai and Shenzhen in 2010-2019,By reading a large number of research literature in relevant fields at home and abroad and the hot issues of corporate governance in recent years,this paper puts forward the hypothesis of this study on the basis of behavioral finance,Principal-agent Theory,Upper Echelons Theory and resource dependence theory,The hypothesis for this study is presented,Further build the model,Using multiple regression on the influence of CEO characteristics,board characteristics and stock performance,With the help of principal component analysis,the compositive characteristic index of CEO governance ability and the supervision ability of the board of directors are constructed,To explore how board characteristics regulate the impact of CEO characteristics on stock performance.The study results show that the following:(1)The positive relationship between the term of the CEO and the stock performance of the first two,the lower the fluctuation of the stock return,and the duality promotes the improvement of stock returns;the CEO has a negative correlation with the stock performance of listed companies,and the highly educated CEO will increase the volatility of the stock return.(2)The the board size and the ratio of female directors are positively correlated to the stock performance of the company.The bigger the board is,the better it improves stock returns,and the higher the proportion of female directors,the better to reduce the volatility of stock returns.(3)The supervision ability of the board of directors will positively adjust the relationship between the CEO governance ability and the volatility of the company’s stock return,but too strong supervision will have a negative adjustment effect on the CEO governance ability and the company’s stock return.Finally,this paper makes suggestions on the CEO selection mechanism,the arrangement of board structure and the effectiveness of board supervision.