The impacts of independent director and CEO duality on performance in the Chinese post-institutional-transition era

This paper investigates the influence of corporate governance on performance of modern Chinese firms. Prior studies reveal inconclusive results about the relationship between corporate governance and firm performance. Little research investigates the performance implications of board structure in th...

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Main Authors: Lew, Yong Kyu, Yu, Jing, Park, Jeong-Yang
Format: Article
Published: Wiley 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/45089/
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author Lew, Yong Kyu
Yu, Jing
Park, Jeong-Yang
author_facet Lew, Yong Kyu
Yu, Jing
Park, Jeong-Yang
author_sort Lew, Yong Kyu
building Nottingham Research Data Repository
collection Online Access
description This paper investigates the influence of corporate governance on performance of modern Chinese firms. Prior studies reveal inconclusive results about the relationship between corporate governance and firm performance. Little research investigates the performance implications of board structure in the post-institutional-transition era in China. Based on agency and resource dependence theories, it examines the impacts of board composition and leadership structure on the performance of Chinese manufacturing firms that went public on the Shanghai and Shenzhen Stock Exchanges in 2010. The findings show that separating the posts of CEO and chairman promotes better performance. However, appointing a larger proportion of outside independent directors to the board insignificantly affects performance. This research provides partial support for agency theory and extended insights into corporate governance in emerging economy firms.
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institution University of Nottingham Malaysia Campus
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last_indexed 2025-11-14T19:57:58Z
publishDate 2017
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spelling nottingham-450892020-05-04T19:16:21Z https://eprints.nottingham.ac.uk/45089/ The impacts of independent director and CEO duality on performance in the Chinese post-institutional-transition era Lew, Yong Kyu Yu, Jing Park, Jeong-Yang This paper investigates the influence of corporate governance on performance of modern Chinese firms. Prior studies reveal inconclusive results about the relationship between corporate governance and firm performance. Little research investigates the performance implications of board structure in the post-institutional-transition era in China. Based on agency and resource dependence theories, it examines the impacts of board composition and leadership structure on the performance of Chinese manufacturing firms that went public on the Shanghai and Shenzhen Stock Exchanges in 2010. The findings show that separating the posts of CEO and chairman promotes better performance. However, appointing a larger proportion of outside independent directors to the board insignificantly affects performance. This research provides partial support for agency theory and extended insights into corporate governance in emerging economy firms. Wiley 2017-11-06 Article PeerReviewed Lew, Yong Kyu, Yu, Jing and Park, Jeong-Yang (2017) The impacts of independent director and CEO duality on performance in the Chinese post-institutional-transition era. Canadian Journal of Administrative Sciences, 35 (4). pp. 620-634. ISSN 1936-4490 agency theory board independence CEO duality China corporate governance institutional transition http://onlinelibrary.wiley.com/doi/10.1002/cjas.1468/abstract doi:10.1002/CJAS.1468 doi:10.1002/CJAS.1468
spellingShingle agency theory
board independence
CEO duality
China
corporate governance
institutional transition
Lew, Yong Kyu
Yu, Jing
Park, Jeong-Yang
The impacts of independent director and CEO duality on performance in the Chinese post-institutional-transition era
title The impacts of independent director and CEO duality on performance in the Chinese post-institutional-transition era
title_full The impacts of independent director and CEO duality on performance in the Chinese post-institutional-transition era
title_fullStr The impacts of independent director and CEO duality on performance in the Chinese post-institutional-transition era
title_full_unstemmed The impacts of independent director and CEO duality on performance in the Chinese post-institutional-transition era
title_short The impacts of independent director and CEO duality on performance in the Chinese post-institutional-transition era
title_sort impacts of independent director and ceo duality on performance in the chinese post-institutional-transition era
topic agency theory
board independence
CEO duality
China
corporate governance
institutional transition
url https://eprints.nottingham.ac.uk/45089/
https://eprints.nottingham.ac.uk/45089/
https://eprints.nottingham.ac.uk/45089/