Open AccessThe Unique Nature of Chinese Corporate Governance Practices
Author(s) -
Liu Yan,
Guclu Atinc,
Mark Kroll
Publication year - 1970
Publication title -
journal of business strategies
Language(s) - English
Resource type - Journals
eISSN - 2162-6901
pISSN - 0887-2058
DOI - 10.54155/jbs.28.1.23-51
Subject(s) - corporate governance , business , context (archaeology) , china , accounting , positive relationship , finance , political science , psychology , paleontology , law , biology , social psychology
This study investigates a fairly broad array of factors which may influenceChinese corporate governance and examines the relationships between firm age, topmanagement team age, board structure, ownership structure and firm performancein publicly-listed Chinese firms. As we anticipated, owing to the unique context ofcorporate China, results support a negative relationship between firm age and firmperformance, a positive relationship between percentage of independent directorsand firm performance, and a positive relationship between the presence of foreignblockholders and firm performance. This study also found a positive relationshipbetween the percentages of shares owned by the state as a blockholder and firm performance,but found that neither private nor institutional blockholders influence firmoutcomes. Results also indicate that the relationship between top management ageand firm performance is mediated by firm size. The expected negative relationshipbetween CEO duality and performance and positive relationship between board sizeand firm performance is not supported. These results indicate that there are someunique features of Chinese governance practices that need to be considered by researchersseeking to test the applicability of western theories in the Chinese context.