Abstract
Most of literature related to corporate governance and corporate investment efficiency has been studied from static perspective. This paper conducted a research exploring the dynamic evolution of corporate governance mechanisms to design an index of corporate lifecycle. The result suggests that the impact that corporate governance mechanisms have on investment efficiency is various at different stages of lifecycle. Management equity incentive can significantly improve the efficiency of investment at the stage of growth, while monetary incentive plays a more important role for improving the investment efficiency at the stage of maturity. For firms at the stage of growth, check-and-balance ownership structure can reduce corporate investment efficiency while, at the stage of maturity, check-and-balance ownership structure can help to improve the corporate investment efficiency but not significant statistically. The governance of board can improve the corporate investment efficiency at the stage of maturity. The conclusion of this paper provides a reference for firms to adjust the corporate governance mechanisms dynamically at different stages of lifecycle.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: 2013 International Conference on Quality, Reliability, Risk, Maintenance, and Safety Engineering
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
