Integrated relationships of corporate governance mechanisms and firm performance

摘要

In the study of the corporate governance,the existence of alternative corporate governance mechanisms may lead to a missing variables bias and spurious correlations. Recent studies have investigated the mutual relationships between corporate governance mechanisms and firm performances. First,based on a contingent view of the firm,examining one single corporate governance mechanism in isolation is not a effect way. Four key control mechanisms of corporate governance were identified combining the previous literature with Chinese stock market. Second,consider about endogeneity,simultaneous equations model were presented to capture the interrelationships between the four control mechanisms and firm performance. Then,ordinary least square and two-stage least square estimated the equations with panel data of two exchanges during the period 2002-2004 in a 513 sample of listed firms. In the end,the conclusion is applied to suggest policy implications of China's economic reform.