Mandatory governance, voluntary governance and firm performance -An analysis of China listed firms

Abstract

Under the background of evoluntion of the corporate governance institution from mandatory governance to voluntary governance, the paper examined the effects of mandatory governance and voluntary governance on firm performance, whichbased on a constructed index for China listed firms voluntary governance level. we find that mandatory governance has no significant effect on firm performance; voluntary governance has an impetus effect on firm performance, and the impetus effect of volunray governance on firm performance is higher with lower mandatory governance. These results are still exist even considering the endogeneity of voluntary governance.