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Corporate governance, technological innovation, and corporate performance: Evidence from China

  • 0School of Human Resources Development & Psychology, Universiti Teknologi Malaysia, Johor Bahru, Johor, 81300, Malaysia.
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June 3, 2024

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June 3, 2024

View abstract on PubMed

Summary

This summary is machine-generated.

Strong corporate governance, including equity balance and executive incentives, boosts company performance. Technological innovation acts as a key mediator, enhancing this relationship for sustainable corporate development.

Area Of Science

  • Business and Economics
  • Corporate Governance
  • Technological Innovation

Background

  • Corporate governance is crucial for economic and sustainable development.
  • Listed companies face increasing social responsibility challenges (environmental pollution, financial fraud).
  • Technological innovation is a significant driver of enterprise development.

Purpose Of The Study

  • To explore the relationship between corporate governance and corporate performance.
  • To investigate the mediating role of technological innovation in this relationship.
  • To provide empirical support for improving corporate governance and innovation capabilities.

Main Methods

  • Analysis of data from Chinese A-share main board companies (2012-2022).
  • Utilized output measurement methods for technological innovation.
  • Examined the impact of equity balance, board size, and executive incentives on performance.

Main Results

  • Equity balance, board size, and executive incentives positively impact corporate performance.
  • Technological innovation mediates the relationship between governance factors and corporate performance.
  • Confirmed a positive link between corporate governance, innovation, and performance.

Conclusions

  • Corporate governance significantly influences corporate performance, with technological innovation playing a mediating role.
  • Findings clarify existing controversies and deepen understanding of governance-performance dynamics.
  • Recommends enhancing corporate governance and innovation for sustainable growth.

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