Publicação
The relationship between corporate governance, investment efficiency and financial performance
| Resumo: | In recent years, with the slowdown of the global economy, a series of reform policies introduced by various countries have emphasized the improvement of market structure and the removal of production capacity. At the heart of the reform is the issue of corporate governance, which can effectively reduce agency costs and enhance investment efficiency, thus improving financial performance. This paper focuses on the relationship between corporate governance, investment efficiency and financial performance in three countries: China, Germany and Portugal. On this basis, seven research hypotheses are formulated and four models are developed to test these hypotheses. There is the model of the relationship between corporate governance and financial performance, the econometric model of investment efficiency, the model of the relationship between corporate governance and investment efficiency, and the model of the mediating effect to test the mediating role of investment efficiency. Finally, the empirical analyses found that: (1) Corporate governance is significantly and positively related to financial performance. (2) Corporate governance is significantly positively related to investment efficiency. (3) The mediation effect test model finds that there is a partial mediation effect of investment efficiency. On this basis, this paper puts forward corresponding policy recommendations from two aspects. First, corporate governance. This includes strengthening equity governance, improving board governance mechanisms, and increasing CEO gender diversity. Second, investment efficiency. The company should establish rational, scientific and standardized investment decision-making procedures to enhance the usefulness of decision-making to improve financial performance. |
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| Autores principais: | Tingting, Lyu |
| Assunto: | Corporate governance Investment efficiency Financial performance |
| Ano: | 2025 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Instituto Politécnico de Bragança |
| Idioma: | inglês |
| Origem: | Biblioteca Digital do IPB |
| Resumo: | In recent years, with the slowdown of the global economy, a series of reform policies introduced by various countries have emphasized the improvement of market structure and the removal of production capacity. At the heart of the reform is the issue of corporate governance, which can effectively reduce agency costs and enhance investment efficiency, thus improving financial performance. This paper focuses on the relationship between corporate governance, investment efficiency and financial performance in three countries: China, Germany and Portugal. On this basis, seven research hypotheses are formulated and four models are developed to test these hypotheses. There is the model of the relationship between corporate governance and financial performance, the econometric model of investment efficiency, the model of the relationship between corporate governance and investment efficiency, and the model of the mediating effect to test the mediating role of investment efficiency. Finally, the empirical analyses found that: (1) Corporate governance is significantly and positively related to financial performance. (2) Corporate governance is significantly positively related to investment efficiency. (3) The mediation effect test model finds that there is a partial mediation effect of investment efficiency. On this basis, this paper puts forward corresponding policy recommendations from two aspects. First, corporate governance. This includes strengthening equity governance, improving board governance mechanisms, and increasing CEO gender diversity. Second, investment efficiency. The company should establish rational, scientific and standardized investment decision-making procedures to enhance the usefulness of decision-making to improve financial performance. |
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