Institutions, Board Structure, and Corporate Performance: Evidence from Chinese Firms

54 Pages Posted: 1 Oct 2011 Last revised: 2 Apr 2014

See all articles by Tao Chen

Tao Chen

Nanyang Technological University (NTU) - Division of Banking & Finance

Date Written: June 30, 2013

Abstract

This paper investigates how institutional environment like property rights protection influences the size and composition of corporate boards, and further, how board structure impacts firm performance in China. Using a World Bank survey of 2,400 public and private firms across 18 Chinese cities, I find robust evidence that weaker helping hand from the government is associated with a higher number and proportion of outsiders on the board, after controlling for the effects of firm complexity, growth opportunities, CEO characteristics, ownership, and the potential endogeneity concern. Furthermore, the results show that when firms are operating in a weak property rights environment, more outsiders improve corporate performance.

Keywords: Corporate Governance, Property Rights, Institutions, Board Size and Structure, Firm Performance

JEL Classification: G34, G3, K22, P3

Suggested Citation

Chen, Tao, Institutions, Board Structure, and Corporate Performance: Evidence from Chinese Firms (June 30, 2013). Available at SSRN: https://ssrn.com/abstract=1936280 or http://dx.doi.org/10.2139/ssrn.1936280

Tao Chen (Contact Author)

Nanyang Technological University (NTU) - Division of Banking & Finance ( email )

S3-B1A-08, Nanyang Avenue
Singapore, 639798
Singapore

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
414
Abstract Views
2,693
rank
85,307
PlumX Metrics