Earticle

초록

영어

Drawing on panel data from Chinese A-share listed firms during 2013–2024, this study develops a comprehensive analytical framework of “board stability–agency costs–investment efficiency” to examine how board stability affects corporate investment efficiency and to uncover the underlying mechanisms through which this influence operates. In the context of emerging markets, where corporate governance quality and efficient resource allocation are increasingly emphasized, understanding the role of dynamic governance characteristics has become particularly important. While prior research has mainly focused on static board characteristics such as board size, independence, and diversity, relatively little attention has been devoted to the governance implications of board stability as a dynamic feature of corporate governance structures. To address this gap, the present study employs panel regression models with firm and year fixed effects to test the relationship between board stability and investment efficiency, while conducting a series of robustness checks and endogeneity tests to ensure the reliability of the empirical findings. The empirical results demonstrate that board stability significantly improves corporate investment efficiency, indicating that stable governance structures help maintain strategic continuity and enhance the effectiveness of resource allocation within firms. A stable board allows directors to accumulate firm-specific governance knowledge and industry experience, which strengthens monitoring effectiveness and improves the quality of strategic decision-making. Further analysis reveals that agency costs serve as an important transmission channel linking board stability and investment efficiency. Specifically, board stability reduces agency costs by strengthening internal monitoring and mitigating managerial opportunistic behavior, thereby indirectly enhancing investment efficiency. In addition, employee size is found to negatively moderate the relationship between board stability and investment efficiency. As organizational scale expands, increasing governance complexity, communication costs, and coordination difficulties may weaken the governance advantages associated with stable boards. This finding suggests that the effectiveness of governance mechanisms may vary depending on firm characteristics and organizational structure. This study contributes to the corporate governance literature in several ways. By introducing a dynamic governance perspective, it expands the existing research framework on board characteristics and corporate investment efficiency. The study also identifies the mediating role of agency costs and the moderating influence of employee size, thereby providing a more comprehensive understanding of the mechanisms through which board stability shapes corporate investment behavior. Finally, the findings offer empirical evidence from the Chinese institutional context, providing practical implications for improving governance mechanisms and promoting more efficient investment decisions among listed firms.

목차

Abstract
1. Introduction
2. Review of Relevant Literature
2.1. Studies on Board Stability
2.2. Research on Corporate Investment Efficiency
2.3. Board Stability and Its Influence on Investment Efficiency
2.4. Literature Review Summary
3. Conceptual Foundations and Hypothesis Development
3.1. How Board Stability Influences Firms’ Investment Efficiency
3.2. Mediating Mechanism of Agency Costs
3.3. Moderating Effect of Employee Size
4. Research Framework
4.1. Sample Selection and Data Sources
4.2. Variable Specification and Conceptual Definitions
4.3. Model Design
5. Empirical Findings and Discussion
5.1. Summary of Descriptive Statistics
5.2. Baseline Regression
5.3. Robustness Tests
5.4. Endogeneity Assessment
6. Further Analysis
6.1. Mechanism Test
6.2. Moderating Effect
7. Conclusion And Policy Implications
7.1. Conclusion
7.2. Policy Recommendations
7.3. Theoretical Contributions and Practical Implications
References

키워드

저자

• Wu, Yalian [ aSSIST University, Korea ]
• Dai, Jianhua [ China University of Political Science and Law, China ] Corresponding Author

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  Journal of China Studies

• 간기

  계간

• pISSN

  1975-5902

• eISSN

  3022-5590

• 수록기간

  2006~2026

• 등재여부

  KCI 등재

• 십진분류

  KDC 912 DDC 951