Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Business and Policy Studies
Series Vol. 11 , 13 September 2023
Open
Access | Article
Corporate Governance and Firm Performance in China: A Comparative Case Study of China National Petroleum Corporation and Other Four Asian Corporations
* Author to whom correspondence should be addressed.
Abstract
The study examines the impact of corporate governance on China Petroleum Nation Corporation and compares it with other selected four firms within China and Asia region. The variable identified for measuring corporate performance in this study includes return on Assets, Board size, duality, and interdependence of the board members as of 2022. The impacts of corporate governance on the firms were established through collecting information from the company’s annual reports. The data obtained from the reports have been used for descriptive and correlational analysis. From this study, it has been established that firms within Asia tend to use various elements of structure to determine their performance. The variables used in the analysis, such as duality, the board size, and the interdependence of the board members, had a significant positive relationship with the firm’s performance. The study concluded that company directors should balance critical corporate structure variables to attain high organizational performance. Proper corporate governance has a significant impact on the performance of a company.
Keywords
board structure, board size, independent directors, film performance
References
1. Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74-95.
2. Kyere, M., & Ausloos, M. (2021). Corporate governance and firm’s financial performance in the United Kingdom. International Journal of Finance & Economics, 26(2), 1871-1885.
3. Christensen, J., Kent, P., & Stewart, J. (2010). Corporate governance and company performance in Australia. Australian Accounting Review, 20(4), 372– 386.
4. Davidson, R., Goodwin‐Stewart, J., & Kent, P. (2005). Internal governance structures and earnings management. Accounting & Finance, 45(2), 241-267.
5. China National Petroleum Corporation. (2020). Sustainability report 2020. Beijing, China. Retrieved from: http://www.chinadaily.com.cn/specials/sasac/CNPC2020CSR.pdf
6. Christopher, J. (2010). Corporate governance. A multi-theoretical approach to recognizing the wider influencing forces impacting organizations. Critical Perspectives on Accounting, 21(8), 683-695.
7. Bhagat. S., & Bolton, B. (2019). Corporate governance and firm performance: The sequel. Journal of Corporate Finance, 58, 142-168.
8. Goodstein, J., Gautam, K. and Boeker, W. (1994). The effects of board size and diversity on strategic change. Strategic Management Journal, 15, 241–250.
9. Enobakhare, A. (2010). Corporate governance and bank performance in Nigeria. Diss. Stellenbosch: University of Stellenbosch. Retrieved from: https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.1015.3052&rep=rep1&type=pd
10. Arora, A., & Sharma, C. (2016). Corporate governance and firm performance in developing countries: evidence from India. Corporate Governance, 16(2), 420-436.
11. Romano, G., Ferretti, P., & Quirici, M. C. (2012). Corporate Governance and Efficiency of Italian Bank Holding Companies during the financial crisis: an empirical analysis. CINECA IRIS Institutional Research Information System. Retrieved from: http://hdl.handle.net/11568/175583
12. Guo, Z., & Kga, U. K. (2012). Corporate governance and firm performance of listed firms in Sri Lanka. Procedia-Social and Behavioral Sciences, 40, 664-667.
13. Vo, D., & Phan, T. (2013). Corporate governance and firm performance: Empirical evidence from Vietnam. Journal of Economic Development, 7(1), 62-78.
14. Bhaduri, SN & Selarka, E. (2016). Corporate Governance: An overview in corporate governance and corporate social responsibility of Indian companies. Springer, pp. 61-72.
15. Subramanian, S. (2018). Stewardship theory of corporate governance and value system: The case of a family-owned business group in India. Indian Journal of Corporate Governance, 11(1), 88-102.
16. Glinkowska, B., & Kaczmarek, B. (2015). Classical and modern concepts of corporate governance (Stewardship Theory and Agency Theory). Management, 19(2), 84.
17. Madhani, P. M. (2017). Diverse roles of the corporate board: Review of various corporate governance theories. The IUP Journal of Corporate Governance, 16(2), 7-28.
18. Yusoff, W. F. W., & Alhaji, I. A. (2012). Insight of corporate governance theories. Journal of Business & Management, 1(1), 52-63.
19. Jensen, M. C., & Meckling, W. H. (2019). Theory of the firm: Managerial behavior, agency costs and ownership structure. In Corporate Governance (pp. 77-132). Gower.
20. Balatbat, M. C. A., Taylor, S. L., & Walter, T. S. (2004). Corporate governance, insider ownership and operating performance of Australian initial public offerings. Accounting and Finance, 44(3), 299– 328.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 2nd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-915371-49-2
- ISBN (Online)
- 978-1-915371-50-8
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/11/20230499
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited