Board composition, board activity and ownership concentration, the impact on firm performance

Shiguang Ma, University of Wollongong
Gary Tian, University of Wollongong

Article comments

Ma, S. & Tian, G. (2009). Board composition, board activity and ownership concentration, the impact on firm performance. Asian Finance Association (AsianFA) Conference 2009 (pp. 1-51). Brisbane: University of Queensland Business School (UQBS).

Abstract

This paper provides a parallel investigation on the impact of board composition, board activity and ownership concentration on the performance of listed Chinese firms. We find that independent directors enhance firm performance effectively than other board factors. The frequency of shareholder meetings, rather than board meetings, is positively associated with firm value. Tradable share ownership concentration has a positive and linear relationship with firm value, while state and total share ownership concentration represent U(V) shapes. Importantly, companies with the highest levels of both total share and tradable share ownership concentration have a greater firm values than companies with the highest levels of only a single concentration.