Effect of Board and Ownership Structures on Firm Performance: A Study on Chinese Listed Firms

This study investigates the impact of corporate governance components, specifically board and ownership structures, on the performance of Chinese listed firms using data from 2015 to 2023. The analysis, which employs panel regression estimation, reveals that board independence, state ownership, and institutional ownership positively affect firm performance, measured by return on assets, return on equity, and Tobin’s Q. Conversely, larger firm size is associated with lower profitability. The study finds no effect of family ownership, board size, and board meetings on performance. These findings offer practical implications for improving corporate governance practices and firm performance in China.