Simultaneous Relationships Among Ownership, Corporate Governance, and Financial Performance

40 Pages Posted: 18 Apr 2003

See all articles by Oliver M. Rui

Oliver M. Rui

China Europe International Business School (CEIBS)

Michael Firth

Lingnan University - Department of Finance and Insurance

Peter M.Y. Fung

Hong Kong Polytechnic University

Date Written: June 2002

Abstract

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

Rui, Oliver M. and Firth, Michael and Fung, Peter M.Y., Simultaneous Relationships Among Ownership, Corporate Governance, and Financial Performance (June 2002). Available at SSRN: https://ssrn.com/abstract=337860 or http://dx.doi.org/10.2139/ssrn.337860

Oliver M. Rui (Contact Author)

China Europe International Business School (CEIBS) ( email )

699 Hong Feng Road
Pudong
Shanghai 201206
China
86-21-28905618 (Phone)
86-21-28905620 (Fax)

HOME PAGE: http://https://www.ceibs.edu/rui-oliver

Michael Firth

Lingnan University - Department of Finance and Insurance ( email )

Castle Peak Road
Tuen Mun, New Territories
Hong Kong
China
+852 2616 8160 (Phone)
+852 2466 4751 (Fax)

Peter M.Y. Fung

Hong Kong Polytechnic University ( email )

Hung Hom, Kowloon
Hong Kong

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