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

The 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 and employing panel regression estimation, the research finds 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 negatively impacts performance, indicating lower profitability. Family ownership, board size, and board meetings do not influence performance. These findings offer practical insights for policymakers and managers to enhance corporate governance practices and improve firm performance.