IDEAS home Printed from https://ideas.repec.org/a/cup/maorev/v14y2018i02p305-341_00.html
   My bibliography  Save this article

How Does Firm Life Cycle Affect Board Structure? Evidence from China's Listed Privately Owned Enterprises

Author

Listed:
  • Li, Yunhe
  • Zhang, Xiaotian Tina

Abstract

Using data from China's listed privately owned enterprises (POEs) during the period from 2002 to 2014, we explore the effects of firm life cycle on board structure. We find that the board size of China's listed POEs declines over firm life cycle, and there is a trend of separation for board chair-CEO duality while board independence remains almost static. We further provide evidence that board size and independence are determined by the benefits of monitoring and advisory roles of the boards through all the stages of firms’ life cycle with different drivers. The impact of CEO power on board chair-CEO duality is determined by the benefits and costs of separation of board chair, and CEOs are supported at all stages of firms’ life cycle. This article sheds light on the dynamic board structure in an emerging economy where the external corporate governance is weaker than that of developed countries. Our findings suggest that the board structures of China's listed POEs are adjusted at various stages of firms’ life cycle, and the adjustments are mostly based on the resources brought by the new board of directors.

Suggested Citation

  • Li, Yunhe & Zhang, Xiaotian Tina, 2018. "How Does Firm Life Cycle Affect Board Structure? Evidence from China's Listed Privately Owned Enterprises," Management and Organization Review, Cambridge University Press, vol. 14(2), pages 305-341, June.
    • Handle: RePEc:cup:maorev:v:14:y:2018:i:02:p:305-341_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1740877617000559/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Anup Banerjee & Mattias Nordqvist & Karin Hellerstedt, 2020. "The role of the board chair—A literature review and suggestions for future research," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 372-405, November.
    2. Habib, Ahsan & Hasan, Mostafa Monzur, 2019. "Corporate life cycle research in accounting, finance and corporate governance: A survey, and directions for future research," International Review of Financial Analysis, Elsevier, vol. 61(C), pages 188-201.
    3. Li, Yunhe & Tina Zhang, Xiaotian, 2023. "Rent-seeking in bank credit and firm R&D innovation: The role of industrial agglomeration," Journal of Business Research, Elsevier, vol. 159(C).
    4. Yunhe Li & Faqin Lan, 2021. "The determinants of adjustment speed of board structure: evidence from Chinese listed companies," Review of Managerial Science, Springer, vol. 15(3), pages 725-753, April.

    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:cup:maorev:v:14:y:2018:i:02:p:305-341_00. 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: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/mor .

    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.