Independent Directorship and Corporate Performance: Some Further Testing from the China Case


  •  Jordan Shan    
  •  Jianhong Qi    

Abstract

This study attempts to re-examine several hypotheses suggested by the literature concerning the relationship between corporate governance and corporate performance using the data from China. The findings of the paper suggest that corporate performance in China is mostly influenced by other economic variables, not by corporate governance and the hypotheses that corporate governance will have positive on corporate performance is not valid. This poses a question for China as to whether the current top-down approach to corporate governance (which is largely based on duplicating the Anglo-American model) will be effective in linking the firm performance and independent directorship.


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