The impact of government shareholding on firm performance: A corporate governance perspective

Abstract

This research uses data from publicly listed firms in Taiwan to investigate the role of government as a shareholder in a firm’s corporate governance and its impact on a firm’s performance. Using Structural Equation Model (SEM), we verify the direct effect of government shareholdings on corporate governance and firm performance. We also observe the indirect effect of government shareholdings on firm performance through the channel that government shareholdings exercise influence on a firm’s corporate governance.