| Summary: | 碩士 === 靜宜大學 === 國際碩士學位學程 === 102 === This thesis investigates the relationship between corporate governance structure and corporate performance with the sample of 130 listed firms in Mongolia. Because agency theory suggests that companies with better corporate governance structure perform better, I propose that better governed firms would have greater performance. Also the role of corporate governance is to reduce the divergence of interest between shareholders and managers and corporate governance is more useful when managers have incentive to deviate from shareholders’ interests (Alam, 2009). The Corporate governance internal mechanisms investigated here include ownership concentration, number of board directors, proportion of independent directors and CEO duality. More attention is taken to investigate the impact of ownership concentration on firm performance. Because most Mongolia firm are controlled by a small number of shareholders. Surprisingly we found that ownership concentration does not have a significant impact on the firm performance in Mongolia. However, the proportion of independent directors is negatively related to firm performance and the number of members in the board of directors positively related to the firm performance. Also, the leverage ratio is positively related to the firm performance.
The above finding seems to tell the potential investors interesting in Mongolia several things.
1.Currently, most Mongolia company owners still do not like to share company ownership with investors. If they need to raise resource for project, they will go to bank for loans.
2.The independent members in the boards of directors may not possess the necessary business knowledge and skills to boast the firm performance.
3.The size of the board of directors is important for the board to run its supervision job.
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