Corporate Ownership, Governance and Performance: Evidence From Asian Countries

Rathnayake, D. N., & Sun, G. (2017). Corporate Ownership, Governance and Performance: Evidence from Asian Countries. Research Journal of Finance and Accounting, Vol 8(15), 28-36.

9 Pages Posted: 9 Mar 2018

See all articles by Dilesha Rathnayake

Dilesha Rathnayake

Shandong University of Technology; Dongbei University of Finance and Economics

Gang Sun

Dongbei University of Finance and Economics

Date Written: August 30, 2017

Abstract

This paper investigates the relationship between corporate ownership, corporate governance and corporate performance in Asia such as China, India, Singapore, Pakistan, Malaysia and Sri Lanka. In addition, this study examines whether there is an impact of ownership structure and ownership concentration levels on firm’s performance. This study considers board size, shareholder’s independence and age of the corporation are used as corporate governance measures. Firm performance is measured by the return on assets (ROA) and return on equity (ROE) for the period 2016. Our finding suggests that corporate governance measures have significant positive relationships with ROA. We find that higher ownership concentration levels are positively related with corporate performance. Finally, we conclude that an increase in the quality of corporate governance may enhance corporate performance. The policy makers can improve the governance mechanism of the firms, which in turn enhance the performance of the firms.

Keywords: Corporate Governance, Firm Performance, Corporate Ownership, Asia

JEL Classification: G15, G30

Suggested Citation

Rathnayake, Dilesha and Sun, Gang, Corporate Ownership, Governance and Performance: Evidence From Asian Countries (August 30, 2017). Rathnayake, D. N., & Sun, G. (2017). Corporate Ownership, Governance and Performance: Evidence from Asian Countries. Research Journal of Finance and Accounting, Vol 8(15), 28-36. , Available at SSRN: https://ssrn.com/abstract=3134585

Dilesha Rathnayake (Contact Author)

Shandong University of Technology ( email )

No: 88, Gongqingtuan west road
Zhangdian
Zibo, Shandong
China

Dongbei University of Finance and Economics ( email )

217 Jianshan Street
Dalian
China

Gang Sun

Dongbei University of Finance and Economics ( email )

217 Jianshan St,
Shahekou
Dalian, Liaoning
China

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