Board of directors characteristics, ownership structure and firm performance: Evidence from China

The purpose of this study is to investigate the relationships between dual board characteristics and ownership structure and firm performance of listed companies in China. Specifically, the present study examines the association between board characteristics and ownership structure such as supervisory board, board independence, CEO duality, women directors, board meetings, and ownership concentration and firm performance measured by Tobin’s Q. This study draws on data from 1672 firms listed in Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) for the year of 2018, using a multiple regression model. The study finds that ownership concentration, board meetings and CEO duality are positively significantly associated with firm performance. The study also finds that women directors are not associated with firm performance. The evidence of this study also shows that supervisory board and board independence have no association with firm performance. Future research might include managerial ownership, audit committee and directors’remuneration in the research model. The findings of this study add empirical evidence on the relation between internal corporate governance structure and firm performance in China. These findings of this study might provide useful guidance of corporate governance practices for policymakers and firm managers in China.