Business, Management and Accounting
4 years ago

Smaller boards lead to better performance in Chinese public companies.

Journal of Chongqing University. English Edition
An Empirical Research on The Relationship Between Board of Directors Governance and Corporate Performance of Chinese Public Companies
Zhang Zong-yi

Paper Summary

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The size of a company's board of directors affects its performance, with smaller boards linked to better results. Changes in ownership structure lead to improvements in board structure, which in turn boosts performance. Having one person in charge of both CEO and board chair roles doesn't impact performance. To make boards more effective, companies should establish a reasonable ownership structure and a mechanism for handling human-related issues.