The Impact of Corporate Governance, Ownership Structure, SOEs, and CFO Gender on Investment Efficiency: Evidence from China

Abstract

This paper is aimed at to investigate the ownership mechanism, corporate governance, SOEs and CFO gender association with investment efficiency in the context of Chinese economy.In order to measure efficiency of investment, a famous method developed by Richardson (2006) was utilised in this study. To assess the impact of corporate governance mechanism and ownership structure on the investment efficiency of Chinese-listed companies in Shenzhen and Shanghai stock exchanges, it employed OLS regressions with year and industry effect fixed effect. This study determines that ownership concentration holds a negative relationship with investment efficiency, however, no. of senior executives on the board keep a positive association with investment efficiency. Further, executives and institutional investors in the Chinese firms are increasing investment efficiency. In addition, investment efficiency pronounced more in SOEs firms and when CFO is a male in Chinese listed firms. Furthermore, for policy makers, corporate governance improvement helps to support the managerial interests and institutional investments is required to enhance investment efficiency.