This paper examines the impact of political connection and board diversity on company performance. The sample is composed of information on Chinese‐listed companies from 2008 to 2016. We find a significantly negative correlation between political connection and company performance. Board diversity also has a significantly negative impact on company performance. However, when the impact of the interaction between political connection and board diversity is taken into consideration, we find that it can increase the performance of the firm. Our results imply that political connectedness and board diversity together play a valuable role in a firm's performance.
This paper explores the relationship among ownership type, managerial overconfidence, and corporate performance. In addition, the purposes of this research are to examine the structure of ownership and CEO overconfidence of family businesses and investigates whether it influences the performance. This study uses a panel estimation to exploit both the cross-section and time–series nature of the data; our sample includes firms listed on Taiwan’s stock market during the period of 2009 to 2018, totally 6,612. These results show that (1) financial performance of family business is worse than that of non-family business. It means that family interests of family business are higher than those of company which lead to exploited; (2) CEO overconfidence of family business is lower than that of non-family business. Family supervision and control can lead to family business managers who depress his (her) own overconfident tendency; (3) the overconfident CEO has poor impact on corporate performance. This means that manager’s overconfident expectations will damage company’s benefits; and (4) after the overconfident CEO joins family business, corporate performance will be increased. It means overconfident manager can compensate for family’s conservativeness and lead to increased corporate performance.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.