Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Is corporate governance in China related to performance persistence?
AU - Hass, Lars Helge
AU - Johan, Sofia
AU - Schweizer, Denis
PY - 2016/4
Y1 - 2016/4
N2 - This paper examines the relationship between performance persistence and corporate governance (as proxied for by board characteristics and shareholder structure). We document systematic differences in performance persistence across listed companies in China during 2001–2011, and empirically demonstrate that firms with better corporate governance show higher performance persistence. The results are robust over both the short and long terms. We also find that performance persistence is an important factor in refinancing, and it can lower companies’ costs of borrowing. Overall, our findings offer important implications for business ethics, as we demonstrate how corporate governance can lower companies’ costs of debt.
AB - This paper examines the relationship between performance persistence and corporate governance (as proxied for by board characteristics and shareholder structure). We document systematic differences in performance persistence across listed companies in China during 2001–2011, and empirically demonstrate that firms with better corporate governance show higher performance persistence. The results are robust over both the short and long terms. We also find that performance persistence is an important factor in refinancing, and it can lower companies’ costs of borrowing. Overall, our findings offer important implications for business ethics, as we demonstrate how corporate governance can lower companies’ costs of debt.
KW - Board structure
KW - China
KW - Corporate governance
KW - Performance persistence
U2 - 10.1007/s10551-014-2385-3
DO - 10.1007/s10551-014-2385-3
M3 - Journal article
VL - 134
SP - 575
EP - 592
JO - Journal of Business Ethics
JF - Journal of Business Ethics
SN - 0167-4544
IS - 4
ER -