Simultaneous Relationships Among Ownership, Corporate Governance, and Financial Performance
40 Pages Posted: 18 Apr 2003
Date Written: June 2002
We draw on the many aspects of corporate governance examined in the developed economies and extend them to the Chinese environment. We find evidence of strong linkage and interdependence in the use of different control mechanisms. While there are significant relationships between the governance control mechanisms and firm performance, these disappear when using simultaneous equation estimation. Our findings support the argument that governance control mechanisms operate independently and they are substitutes for one another.
Keywords: Ownership, Corporate Governance, SOEs
JEL Classification: G3, P2
Suggested Citation: Suggested Citation