Empirical Research on the Relationship between Discretion of the Board of Directors and Performance of a Company

Discretion reflects the extent of the survival environment is controlled by the board of directors. Whether or not the size of the discretion of the board of directors can lead to changes in company performance? This paper discusses the impact of the discretion on Performance, using the data sample of Shanghai and Shenzhen A-share listed companies in 2011. Though sample validity factor analysis and empirical analysis by curvilinear regression, it concludes that the impact of the discretion on performance inverted U-shaped relationship.