Corporate governance and firm performance: Empirical evidence from China

摘要

This study seeks to investigate the relationship between corporate governance, measured by Corporate Governance Index (CGI) innovatively, and firm's performance measured by Firm Performance Index (FPI) creatively. The empirical approach in the study lies in constructing a comprehensive measure of the corporate governance for listed companies in the years 2007-2011. The results show a positive association between corporate governance and performance. Finally, the results present that size, leverage and industry all affect the FPI.