Corporate Governance in China: A Meta-Analysis
Canan C. Mutlu, Marc van Essen, MikeW. Peng, Sabrina F. Saleh and Patricio Duran
Journal of Management Studies (forthcoming)
Overview How have “good corporate governance” principles changed firm performance in China? We conducted a meta-analysis of a database of 84 studies, 684 effect sizes, and 547,622 firm observations reported in the corporate governance literature in China. The weight of evidence associates two major principles advocating board independence and managerial incentives with better firm performance. However, we found no strong support for the criticisms of CEO duality. In addition, we went beyond a static perspective assessing certain governance mechanisms as effective or ineffective by investigating temporal hypotheses. We found that with the improved quality of market institutions and development of financial markets over time, board monitoring mechanisms and state ownership become more strongly related to firm performance, while incentive mechanisms lose their significance. Overall, our findings advance a dynamic, institution-based view substantiating the proposal that institutional transitions matter to the relationship between governance mechanisms and firm performance.
4 | Journal Publications - Financial Times Top 50
Made with FlippingBook - Online catalogs