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

Lew, Yong Kyu; Yu, Jing; Park, Jeong-Yang

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.

Citation

Lew, Y. K., Yu, J., & Park, J.-Y. (2018). The impacts of independent director and CEO duality onperformance in the Chinese post-institutional-transition era. Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration, 35(4), 620-634. https://doi.org/10.1002/CJAS.1468

• Journal Article Type: Article
• Acceptance Date: Jan 6, 2017
• Online Publication Date: Nov 6, 2017
• Publication Date: Dec 1, 2018
• Deposit Date: Aug 23, 2017
• Publicly Available Date: Nov 7, 2019
• Journal: Canadian Journal of Administrative Sciences
• Print ISSN: 0825-0383
• Electronic ISSN: 1936-4490
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 35
• Issue: 4
• Pages: 620-634
• DOI: https://doi.org/10.1002/CJAS.1468
• Keywords: agency theory, board independence, CEO duality, China, corporate governance, institutional transition
• Public URL: https://nottingham-repository.worktribe.com/output/893015
• Publisher URL: http://onlinelibrary.wiley.com/doi/10.1002/cjas.1468/abstract
• Additional Information: This is the peer reviewed version of the following article: Lew, Y. K., Yu, J., and Park, J.-Y. (2017) The impacts of independent director and CEO duality on performance in the Chinese post-institutional-transition era. Can J Adm Sci, doi: 10.1002/cjas.1468., which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1002/cjas.1468/abstract. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
• Contract Date: Aug 23, 2017