Corporate Governance Of Listed Companies - 1325 Words

Corporate Governance of Listed Private Companies’ Board of Directors in China Abstract This paper investigated the corporate governance of Board of Directors of listed companies in China. As the research results shows that, the governance of the board in China plays a critical roles for the listed firms corporate performance. This paper discusses the board features including board size, board meetings frequency, board independence, and the leadership structure of the board in china in relationship with the corporate performance. For the corporate performance, I am using the return on equity (ROE) and Earnings per share (EPS) as the proxy for the corporate performance. Based on my analysis and previous research, it verifies that the size†¦show more content†¦However, China, as a government enterprise focused country whose percentage of government held enterprises are over fifty percent for half of the century. The most of the research has been done are more focused on the government owned corporation. In addition, compared to the government held corporation, th e size private enterprise is smaller and with the limited resources for the private held entity, it is easily to cause the information asymmetry. The outside shareholders are more easily to be at a disadvantage. Therefore it is critical to understand the relationships between the board characters and the corporate performance. Based on my research, most of the papers for the Chinese corporate performance are more focused on the executive compensation, and little research has been done for the relationship between the board of directors and the corporate performance. Therefore, to be able to better understanding the relationship and to better control the private held entity, this paper will discuss with it. Discovery of Papers in this Area For this paper, I first looked at some of the research that has been done for North America and finding some of the measures that they are using for the proxy. Most of the researchers will investigate the Chinese corporate performance governance based on two main reasons which are executive compensation and the board of directors character associated with it.