1 Background of research 1研究背景
随着公司的出现和发展，公司治理也随之出现，成为专家学者关注的焦点。英国作为第一个国家兴起公司之一，公司治理体系经历了从最初接种到成熟发展的漫长过程。吉百利报告是英国公司治理发展的里程碑事件，它要求董事会董事会做出声明，详细描述公司治理的有效性，要求公司设立审计委员会，强调内部审计的日常监督是内部控制的组成部分。实际上，吉百利报告成为其他国家建立公司治理的导火索。英国公司治理的发展是调整内部企业责任和权利的过程。目标是通过不同权利的平衡来保持相关利润。随着100年的发展，英国的公司治理变得更加科学合理。公司治理能否改善公司业绩，公司治理能否改善公司业绩？本文主要研究公司治理与公司绩效之间的关系;它将有利于促进公司治理和公司业绩。
With the emergence and development of the company, the corporate governance also emerges, and became focus topic study for experts and scholars. The United Kingdom as the one of the first country emergence company, the corporate governance system experienced a long process from the initial inoculation to the mature development. The Cadbury report is the milepost event of corporate governance development for UK, it requires the director of board make a statement to detail description the effectiveness of corporate governance, require the company establishment the audit committee, stressed that the daily supervision of internal audit is the integral part of internal control. Actually the Cadbury report became fuse for other countries to establish corporate governance. The development of corporate governance of UK is the process of adjustment the internal corporate responsibility and right continuous. The objective is keep the profit of correlation through balance of different rights. As the 100 years development, the corporate governance of UK has become more scientific and reasonable. Whether the corporate governance can improve the performance of company, what corporate governance can improve the performance of company? This paper will mainly research the relationship between corporate governance and performance of company; it will benefit to promote corporate governance and performance of company.
2 Literature reviews
They are many experts research the relationship between corporate governance and performance of company, and found some important conclusions. Cadbury(1992)give the corporate governance defines as “the system by which companies are directed and controlled”. Thomsen(2000) research the relationship between concentration of shareholders structure and performance、valuation of corporation based on more than 400 companies in Europe. Weisbash(2007) research the relationship between directors and performance of corporation, and found the board of directors with external directors accounting the leader position will play a important role when the performance of corporation decrease, or face to restructuring. Pamela Kent & Jenny Stewart(2010)choice the sample of Australia to research the corporate governance and company performance, and found the board sub-committees can enhance the performance of company, when use the ROA and Tobin’s Q measure the performance of company. while the independent directors, has a negative impact on the performance of company, however, there are conflicting significant results between the accounting and market measures for having a dual CEO/chairperson and board size. Uadiale (2010) focused on the board composition in Nigerian companies using 30 companies that were listed on Nigerian Stock Exchange (NSE) in 2007 and analyzed whether board structure (more specifically the proportion of NEDs) had an effect on CFP, which measured by ROCE and ROE. His study positively found the association between NEDs and CFP. Supriti Mishra and Pitabas Mohanty(2014)researched the corporate governance as a value driver for firm performance based on India, and found not only the board indicators influence the firm performance significantly, but also the proactive indicators influence the firm performance significantly, while legal compliance indicator does not do so, the composite corporate governance measure is a good predictor of firm performance.
3 Research Objectives
This paper mainly researches whether corporate governance as a value driver for firm performance based on the FTSE 100 listed companies (no banking firm). the objective is to f ound some conclusions of effect of corporation government to the performance of corporation, and explain the feature of corporation government, such as how many directors of director of board is suitable, why have independent directors in the board of directors, and whether should separate the CEO form the directors of board, whether the larger ratio of TOP1 shareholders, the more better performance of company. Then improve the corporation government of UK from the theory and empirical found.
4 Research Question
What is the relationship between corporation government and performance of corporation based on the FTSE100 listed companies (no banking firm) in UK? How the corporation governments affect the performance of corporation? Whether the corporate governance as a value driver for firm performance?
5 The content and structure of paper
In this paper, we will collect the samples and use the secondly data, and application the literature reviews、descriptive statistics and regression analysis to researches the relationship between corporate governance and performance of corporation based on the FTSE 100 of UK (no banking firm). The paper structure as follow:
Chapter 1 Background and Definition of Terms Describe the background of research and leads the topic, ensure the research objectives, and then design the content and structure of paper.
Chapter 2 Literature Review Describe the previous studies, analysis the advantages and disadvantages of references, and summary the literature.
Chapter 3 Research Design and Methodology describe the research methodology, sampling frame, sample selection and justification of data as well as a justification of measurement of secondary data.
Chapter 4 the empirical research about the effect of corporation government to the performance of corporation. Collect the sample data, and build the research model, application the statistical software to regress the data, and analysis the regression results.
Chapter 5 Discussion and Conclusion
6 Data resource
The corporation government variables: For the corporate governance, we mainly research legal compliance indicator、Board efficiency indicator、Proactive indicator. (1) legal compliance indicator. It includes the adverse auditor/s report and default in the payment of tax;(2)board efficiency indicator. It includes promoter’s stake、number of directors、number of independent directors in the board、percentage of independent directors in the audit committee、number of board meetings、number of other companies’ boards I which the directors are members、frequency of attendance in the board meetings、CEO duality、performance based compensation of the CEO;(3)proactive indicator. It includes earning forecast score and additional information in the annual report
The performance of corporation variable: They are many approaches to measure performance of company, summary the previous literatures, we will use the return of Assets(ROA) to measure the performance of company.
The control variable: the scale of company(the total asset of company).
This paper mainly use the secondary data. The sample of this paper is FTSE 100 listed companies of UK, and the time is from 2010 to 2013, we get rid of banking firm because the banking firm has different corporate governance. the data of paper mainly collect from Bloomberg、Yahoo finance.
7 Methodology
The mainly methodologies includes quantitative analysis and qualitative analysis, the qualitative analysis contains literature reviews, investigation, summary previous literatures, the comparative analysis, comparative the corporate governance of UK to others countries. The quantitative analysis mainly collect data, build model, and apply the soft to deal data, Actually the quantitative includes univariate Analysis、Multivariate Analysis、the ANOVA Analysis.
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