Corporate Governance and Firm Efficiency: An Application of Internet Companies of China

Muhammad Farooq Shabbir, Ye Xin and Sadaf Hafeez

Emerging Markets Finance and Trade, 2020, vol. 56, issue 12, 2874-2890

Abstract: This study analyzes the impact of corporate governance on firm efficiency. The recent trend to measure performance from efficiency ratios has received attention due to its realistic approach. However, empirical evidence to prove a significant relationship between corporate governance and firm efficiency is lacking. We study panel data on 2,823 firm-year observations of Chinese internet companies from 2005 to 2017, using data envelopment analysis with variable return to scale technology to measure efficiency. The efficiency scores of companies are then regressed on corporate governance variables to measure the effect on technical efficiency. Furthermore, fuzzy-set qualitative comparative analysis (QCA) analysis used to provide a deep empirical understanding of the phenomenon. This study contributes to the existing body of knowledge in two ways by providing a strategic framework for exploring the governance-efficiency relation by providing empirical evidence. In addition, this study uses multiple methodological approaches to provide useful insights into corporate governance and efficiency.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2019.1667768 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:56:y:2020:i:12:p:2874-2890

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2019.1667768

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().