The Impact of Board Characteristics on Corporate Performance: Evidence from Chinese A-share Market

DOI

10.2991/978-94-6463-506-5_8How to use a DOI?

Keywords

corporate performance; board characteristics; OLS; board size; board compensation; gender diversity; financial background

Abstract

The purpose of this paper is to investigate the impact of board characteristics on corporate performance within China’s A-share market. Drawing upon agency theory and resource dependence theory, this study posits four hypotheses - namely, board size(B_SIZE), board compensation(B_COMP), gender diversity(G_DIV) and financial background(F_BKGD) - as potential determinants of corporate performance. The study included all publicly listed companies in the A-share market in 2022, excluding financial institutions and ST companies, as the research subjects for conducting an Ordinary Least Squares (OLS) regression analysis. The regression results indicate a advantageous correlation between board compensation and corporate performance, as well as a positive impact of gender diversity on corporate performance. However, contrary to our initial prediction, a detrimental effect on corporate performance is observed from having a financial background. Furthermore, the influence of board size is found to be statistically insignificant, suggesting a potential quadratic relationship with the independent variables. These findings carry significant implications for Chinese market investors in assessing company performance and for listed companies to enhance their board structure optimization.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Heng Quan
PY  - 2024
DA  - 2024/09/02
TI  - The Impact of Board Characteristics on Corporate Performance: Evidence from Chinese A-share Market
BT  - Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)
PB  - Atlantis Press
SP  - 60
EP  - 68
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-506-5_8
DO  - 10.2991/978-94-6463-506-5_8
ID  - Quan2024
ER  -