Abstract An empirical analysis is made to investigate the relationship between control structure and firm performance. A severe endogenous in the relationship between the two variabl is found. In the case of the endogeneity, the coefficient of the two variables is much higher. Control decentralization is positive to upgrade firm performance. Meanwhile, the performance improvement in turn works for control balance. Tobin’s Q is a more accurate measure of performance index than profitability.
HOU Jian-Beng,TAO Guan-Qi,XU Beng-An. An Empirical Analysis on the Endogenous Relationship between Control Structure and Firm Performance. Economic Survey, 2012, 1(5): 092.
2012, Vol. 1 
