Corporate Governance in China: A Meta-Analysis
© 2017 John Wiley & Sons Ltd and Society for the Advancement of Management Studies How has the impact of ‘good corporate governance’ principles on firm performance changed over time in China? Amassing a database of 84 studies, 684 effect sizes, and 547,622 firm observations, we explore this im...
| Main Authors: | , , , , |
|---|---|
| Format: | Journal Article |
| Published: |
Blackwell Publishing Ltd
2018
|
| Online Access: | http://hdl.handle.net/20.500.11937/71514 |
| _version_ | 1848762500371185664 |
|---|---|
| author | Mutlu, C. Van Essen, M. Peng, Mike Saleh, S. Duran, P. |
| author_facet | Mutlu, C. Van Essen, M. Peng, Mike Saleh, S. Duran, P. |
| author_sort | Mutlu, C. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2017 John Wiley & Sons Ltd and Society for the Advancement of Management Studies How has the impact of ‘good corporate governance’ principles on firm performance changed over time in China? Amassing a database of 84 studies, 684 effect sizes, and 547,622 firm observations, we explore this important question by conducting a meta-analysis on the corporate governance literature on China. The weight of evidence demonstrates that two major ‘good corporate governance’ principles advocating board independence and managerial incentives are indeed associated with better firm performance. However, we cannot find strong support for the criticisms against CEO duality. In addition, we go beyond a static perspective (such as certain governance mechanisms are effective or ineffective) by investigating the temporal hypotheses. We reveal that over time, with the improvement in the quality of market institutions and development of financial markets, the monitoring mechanisms of the board and state ownership become more strongly related to firm performance, whereas the incentive mechanisms lose their significance. Overall, our findings advance a dynamic institution-based view by substantiating the case that institutional transitions matter for the relationship between governance mechanisms and firm performance in the second largest economy in the world. |
| first_indexed | 2025-11-14T10:48:33Z |
| format | Journal Article |
| id | curtin-20.500.11937-71514 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:48:33Z |
| publishDate | 2018 |
| publisher | Blackwell Publishing Ltd |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-715142018-12-13T09:33:09Z Corporate Governance in China: A Meta-Analysis Mutlu, C. Van Essen, M. Peng, Mike Saleh, S. Duran, P. © 2017 John Wiley & Sons Ltd and Society for the Advancement of Management Studies How has the impact of ‘good corporate governance’ principles on firm performance changed over time in China? Amassing a database of 84 studies, 684 effect sizes, and 547,622 firm observations, we explore this important question by conducting a meta-analysis on the corporate governance literature on China. The weight of evidence demonstrates that two major ‘good corporate governance’ principles advocating board independence and managerial incentives are indeed associated with better firm performance. However, we cannot find strong support for the criticisms against CEO duality. In addition, we go beyond a static perspective (such as certain governance mechanisms are effective or ineffective) by investigating the temporal hypotheses. We reveal that over time, with the improvement in the quality of market institutions and development of financial markets, the monitoring mechanisms of the board and state ownership become more strongly related to firm performance, whereas the incentive mechanisms lose their significance. Overall, our findings advance a dynamic institution-based view by substantiating the case that institutional transitions matter for the relationship between governance mechanisms and firm performance in the second largest economy in the world. 2018 Journal Article http://hdl.handle.net/20.500.11937/71514 10.1111/joms.12331 Blackwell Publishing Ltd restricted |
| spellingShingle | Mutlu, C. Van Essen, M. Peng, Mike Saleh, S. Duran, P. Corporate Governance in China: A Meta-Analysis |
| title | Corporate Governance in China: A Meta-Analysis |
| title_full | Corporate Governance in China: A Meta-Analysis |
| title_fullStr | Corporate Governance in China: A Meta-Analysis |
| title_full_unstemmed | Corporate Governance in China: A Meta-Analysis |
| title_short | Corporate Governance in China: A Meta-Analysis |
| title_sort | corporate governance in china: a meta-analysis |
| url | http://hdl.handle.net/20.500.11937/71514 |