Notice of RetractionCorporate Governance and Governance Premium: Evidence from China

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

The purpose of this paper is to find whether the good corporate governance can bring governance premium. In this paper we employ the China Corporate Governance Index (CCGI) to denote the governance quality of the company. We find that corporate governance does bring significant premium. That means, ceteris paribus, the companies which have a high quality of corporate governance can bring higher return for the investors. Furthermore, we find that the board governance, the executive governance and the stakeholder governance can produce the significant governance premium, which is different from the other three dimensions which is the shareholder governance, the supervisor committee governance and information disclosure governance. This is the first time to find the evidence of governance premium s in China stock market.