Is Corporate Governance in China Related to Performance Persistence?

Lars Helge Haß (), Sofia Johan and Denis Schweizer ()
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Lars Helge Haß: Lancaster University
Denis Schweizer: Concordia University

Journal of Business Ethics, 2016, vol. 134, issue 4, No 5, 575-592

Abstract: Abstract This paper examines the relationship between performance persistence and corporate governance (as proxied for by board characteristics and shareholder structure). We document systematic differences in performance persistence across listed companies in China during 2001–2011, and empirically demonstrate that firms with better corporate governance show higher performance persistence. The results are robust over both the short and long terms. We also find that performance persistence is an important factor in refinancing, and it can lower companies’ costs of borrowing. Overall, our findings offer important implications for business ethics, as we demonstrate how corporate governance can lower companies’ costs of debt.

Keywords: Board structure; China; Corporate governance; Performance persistence (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s10551-014-2385-3

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