Board Composition, Board Activity and Ownership Concentration, the Impact on Firm Performance

Problems and Perspectives in Management, Forthcoming

51 Pages Posted: 16 Sep 2014

See all articles by Shiguang Ma

Shiguang Ma

University of Wollongong - School of Accounting Economics and Finance

Gary Gang Tian

Macquarie University - Department of Applied Finance and Actuarial Studies; Macquarie University, Macquarie Business School

Date Written: September 14, 2014

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.

Keywords: Board Composition; Ownership; Concentration; Performance; Firm value

JEL Classification: G32; G34

Suggested Citation

Ma, Shiguang and Tian, Gary Gang, Board Composition, Board Activity and Ownership Concentration, the Impact on Firm Performance (September 14, 2014). Problems and Perspectives in Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2496168 or http://dx.doi.org/10.2139/ssrn.2496168

Shiguang Ma

University of Wollongong - School of Accounting Economics and Finance ( email )

Northfields Avenue
Wollongong, NSW 2522
Australia

Gary Gang Tian (Contact Author)

Macquarie University - Department of Applied Finance and Actuarial Studies ( email )

Room 513, Building E4A
North Ryde, NSW, 2109
Australia

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

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