THE STUDY OF RELATIONSHIPS AMONG OFFICE LOCATIONS, CORPORATE GOVERNANCE AND BUSINESS PERFORMANCE: EVIDENCE FROM CHINA LISTED COMPANIES

Year 2017, , 447 - 459, 30.12.2017

Shih-Yao Lin Ai-Chi Hsu

https://doi.org/10.17261/Pressacademia.2017.753

Abstract

Purpose - Based on Tobler’s first law of
geography, this paper applies the concept on friction of distance, and assumes
that business performance and corporate governance are interrelated with the
locations where the according businesses site their headquarter offices. Methodology -  A Differencing Location Factor survey was
designed and used to examine the impacts within. The author first use a  multiple regression to analyze Business
Performance, then the single-factor and multivariate analysis of variance for
Corporate Governance, and the Principal component analysis for comparing the
quality of Corporate Governance.  

Findings- As per empirical results: 1) Corporate business performance
significantly correlates with corporate governance and office locations, with a
significant difference between various areas; and 2) For
enterprises in China , the quality of corporate governance significantly
correlates and varies with their office locations.

Conclusion- Regarding these
results the office location is one of the factors that affect corporate
governance and business performance. This also explains the United States,
China and Taiwan scholars research that the headquarters office has a tendency
to move towards the metropoliscentral in time trajectory.

Keywords

: Corporate governance, business performance, location theory, multiple regression, multivariate analysis of variance, Principal component analysis

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