The Relationship between Corporate Governance and Corporate Performance in China's Civilian-Owned Listed Enterprise

Abstract

This paper examines the relationship between corporate governance and corporate performance. An overall set of measures are constructed to evaluate the practice of corporate governance in China’s civilian-owned listed enterprises. Factor analysis is introduced to construct a comprehensive performance variable. The result demonstrates better corporate governance mechanism is not associated with higher corporate performance in China’s civilian-owned listed enterprises. Such result has practical implications for Chinese regulatory authorities to establish and revise the corporate governance practice standards tailored to Chinese unique background.