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 qua
