An Empirical Study on the Effect of Independent Directors on Firm Performance from the View of Regulation Environment

Shan-hui Wang () and Qi-shen Zhou
Additional contact information
Shan-hui Wang: Huazhong University of Science and Technology
Qi-shen Zhou: Huazhong University of Science and Technology

Chapter Chapter 88 in The 19th International Conference on Industrial Engineering and Engineering Management, 2013, pp 825-835 from Springer

Abstract: Abstract This paper analyses the effect of legislation environment on the relation between independent director and firm performance in China, and provides the Chinese market evidence for the international company governance study. We mainly focus on the effect of The Guidance of establishing independent director system in listed company on the relation between independent director and firm performance. Using the Mixed cross-sectional data of listed companies in Shanghai and Shenzhen Stock Exchange from 1998 to 2005, we found a significant improvement of the proportion of independent director after publishing the guidance. The results conclude that the proportion of independent director is significantly negative related to the firm performance, however, the legislation did not seem to enhance or weaken the negative relationship between independent director and firm performance.

Keywords: Firm performance; Independent director; Regulation environment; The guidance (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-642-38433-2_88

Ordering information: This item can be ordered from
http://www.springer.com/9783642384332

DOI: 10.1007/978-3-642-38433-2_88

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().