Corporate Governance in China: A Meta-Analysis

Item Type Journal paper
Abstract

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 metaanalysis
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.

Authors Mutlu, Canan; van Essen, Marc; Peng, Mike; Saleh, Sabrina & Duran, Patricio
Journal or Publication Title Journal of Management Studies
Language English
Subjects business studies
HSG Classification contribution to scientific community
HSG Profile Area Global Center for Entrepreneurship + Innovation
Refereed Yes
Date 2018
Publisher Blackwell Publishing Limited
Volume 55
Number 6
Page Range 943-979
ISSN 0022-2380
Publisher DOI 10.1111/joms.12331
Depositing User Prof. Dr. Marc van Essen
Date Deposited 28 Nov 2018 14:10
Last Modified 03 Feb 2020 13:21
URI: https://www.alexandria.unisg.ch/publications/255876

Download

[img] Text
Mutlu et al_2018.pdf

Download (263kB)

Citation

Mutlu, Canan; van Essen, Marc; Peng, Mike; Saleh, Sabrina & Duran, Patricio (2018) Corporate Governance in China: A Meta-Analysis. Journal of Management Studies, 55 (6). 943-979. ISSN 0022-2380

Statistics

https://www.alexandria.unisg.ch/id/eprint/255876
Edit item Edit item
Feedback?