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

Lew, Yong Kyu and 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 . ISSN 1936-4490 (In Press)

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Abstract

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.

Item Type: Article
Keywords: agency theory, board independence, CEO duality, China, corporate governance, institutional transition
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Depositing User: Eprints, Support
Date Deposited: 23 Aug 2017 07:52
Last Modified: 23 Aug 2017 07:52
URI: http://eprints.nottingham.ac.uk/id/eprint/45089

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