Title: Empirical Study on the Evaluation of the Board Governance of China's Listed Companies
Abstract: The board governance is the core of corporate governance; the level of board governance is the key factor for the improvement of corporate performance. Based on the review of related literature, the paper builds the indexes of evaluation system and makes some empirical analysis. The results are: (1)The holding-shareholder and industry have a certain effect on the board governance; (2)There exists a converse U curve relation between the board governance and the corporate performance. These results confirm the alternative effect view on board governance by Kenneth J. Rediker and Anju Seth. The policy implication of these results is that under current circumstance of lacking external governance mechanism and big shareholder's governance, little monitoring between inside directors and little incentive effect of shareholding, the key to reform the board should be to improve the institutional construction of the board's special committee, and to strengthen inside governance mechanisms through introducing strategic investors especially private ones.
Publication Year: 2005
Publication Date: 2005-01-01
Language: en
Type: article
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Cited By Count: 4
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