IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v55y2018i6p943-979.html
   My bibliography  Save this article

Corporate Governance in China: A Meta‐Analysis

Author

Listed:
  • Canan C. Mutlu
  • Marc Van Essen
  • Mike W. Peng
  • Sabrina F. Saleh
  • Patricio Duran

Abstract

How has the impact of ‘good corporate governance’ principles on firm performance changed over time in China? Amassing a database of 84 studies, 684 effect sizes, and 547,622 firm observations, we explore this important question by conducting a meta‐analysis on the corporate governance literature on China. The weight of evidence demonstrates that two major ‘good corporate governance’ principles advocating board independence and managerial incentives are indeed associated with better firm performance. However, we cannot find strong support for the criticisms against CEO duality. In addition, we go beyond a static perspective (such as certain governance mechanisms are effective or ineffective) by investigating the temporal hypotheses. We reveal that over time, with the improvement in the quality of market institutions and development of financial markets, the monitoring mechanisms of the board and state ownership become more strongly related to firm performance, whereas the incentive mechanisms lose their significance. Overall, our findings advance a dynamic institution‐based view by substantiating the case that institutional transitions matter for the relationship between governance mechanisms and firm performance in the second largest economy in the world.

Suggested Citation

  • Canan C. Mutlu & Marc Van Essen & Mike W. Peng & Sabrina F. Saleh & Patricio Duran, 2018. "Corporate Governance in China: A Meta‐Analysis," Journal of Management Studies, Wiley Blackwell, vol. 55(6), pages 943-979, September.
    • Handle: RePEc:bla:jomstd:v:55:y:2018:i:6:p:943-979
    DOI: 10.1111/joms.12331
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/joms.12331
    Download Restriction: no
    File URL: https://libkey.io/10.1111/joms.12331?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaoming He & Lin Cui & Klaus E. Meyer, 2022. "How state and market logics influence firm strategy from within and outside? Evidence from Chinese financial intermediary firms," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 587-614, June.
    2. Xia, Li & Gao, Shuo & Wei, Jiuchang & Ding, Qiying, 2022. "Government subsidy and corporate green innovation - Does board governance play a role?," Energy Policy, Elsevier, vol. 161(C).
    3. Paul B. McGuinness & João Paulo Vieito & Mingzhu Wang, 2020. "Proactive government intervention, board gender balance, and stakeholder engagement in China and Europe," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 719-762, September.
    4. Pascual Berrone & Patricio Duran & Luis Gómez-Mejía & Pursey P M A R Heugens & Tatiana Kostova & Marc Essen, 2022. "Impact of informal institutions on the prevalence, strategy, and performance of family firms: A meta-analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1153-1177, August.
    5. Alexandre Oliveira & Fernando Carvalho & Nuno Rosa Reis, 2022. "Institutions and Firms’ Performance: A Bibliometric Analysis and Future Research Avenues," Publications, MDPI, vol. 10(1), pages 1-20, February.
    6. Eugenio Zubeltzu-Jaka & Eduardo Ortas & Igor Álvarez-Etxeberria, 2019. "Independent Directors and Organizational Performance: New Evidence from A Meta-Analytic Regression Analysis," Sustainability, MDPI, vol. 11(24), pages 1-25, December.
    7. Maurizio La Rocca & Francesco Fasano & Tiziana La Rocca & Neha Neha, 2024. "Women in CEO duality and firm performance in Europe," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(1), pages 177-214, March.
    8. Hsu, Shufang & Lin, Shih-Wei & Chen, Wei-Peng & Huang, Jhao-Wei, 2021. "CEO duality, information costs, and firm performance," The North American Journal of Economics and Finance, Elsevier, vol. 55(C).
    9. Joyce C. Wang & Lívia Markóczy & Sunny Li Sun & Mike W. Peng, 2019. "She’-E-O Compensation Gap: A Role Congruity View," Journal of Business Ethics, Springer, vol. 159(3), pages 745-760, October.
    10. Li Peng & Yuan Li & Marc Essen & Mike W. Peng, 2020. "Institutions, resources, and strategic orientations: A meta-analysis," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 499-529, June.
    11. Fan, Joseph P.H. & Yu, Xin, 2022. "Do founding families downgrade corporate governance? The roles of intra-family enforcement," Journal of Corporate Finance, Elsevier, vol. 73(C).
    12. Alvaro Cuervo-Cazurra & Patricio Duran & Jean-Luc Arrègle & Marc van Essen, 2023. "Host Country Politics and Internationalization," Post-Print hal-04381312, HAL.
    13. Lebedev, Sergey & Sun, Sunny Li & Markóczy, Lívia & Peng, Mike W., 2021. "Board political ties and firm internationalization," Journal of International Management, Elsevier, vol. 27(3).
    14. Aguilera, Ruth & Duran, Patricio & Heugens, P.P.M.A.R. & Sauerwald, Steve & Turturea, Roxana & VanEssen, Marc, 2021. "State ownership, political ideology, and firm performance around the world," Journal of World Business, Elsevier, vol. 56(1).
    15. Guangfan Sun & Changwei Guo & Junchen Ye & Chaoran Ji & Nuo Xu & Hanqi Li, 2022. "How ESG Contribute to the High-Quality Development of State-Owned Enterprise in China: A Multi-Stage fsQCA Method," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    16. Faozi A. Almaqtari & Hamood Mohd. Al-Hattami & Khalid M. E. Al-Nuzaili & Mohammed A. Al-Bukhrani, 2020. "Corporate governance in India: A systematic review and synthesis for future research," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1803579-180, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jomstd:v:55:y:2018:i:6:p:943-979. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.