Is Corporate Governance in China Related to Performance Persistence?
35 Pages Posted: 6 Oct 2013
Date Written: September 1, 2013
This paper examines the relationship between performance persistence and corporate governance (as proxied for by board characteristics and shareholder structure). We document systematic differences in performance persistence across listed companies in China during 2001-2011, and empirically demonstrate that firms with better corporate governance show higher performance persistence. The results are robust over both the short- and long-term. Performance persistence is an important factor in refinancing, and it can lower companies’ costs of borrowing.
Keywords: Board Structure, China, Corporate Governance, Performance Persistence
JEL Classification: G3, P3
Suggested Citation: Suggested Citation