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Ownership Concentration, Board Independence and Governance Environment: Evidence Based on Listed Companies in China |
GONG Pu, YAN Ye-Zhou |
1.Huazhong University of Science and Technology, Wuhan, China;2.Wuhan Institute of Technology, Wuhan, China |
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Abstract Based on the data about A-share listed companies in China in 2004, this article investigates the governance environment's influence upon ownership concentration and board independence. The authors find out that (i) the regional governance environment indexes and ownership concentration are negatively related, but this relationship is not significant in non state controlled companies and (ii) the regional legalization degree indexes and board independence are positively related in state controlled companies, and there is no evidence that regional government interference index has significant influence upon board independence.
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Received: 27 October 2008
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