Data Mining in Corporate Governance: Ownership Structure, Structure of Board of Directors and Firm Performance

With a descriptive and predictive ability, data mining (DM) can discover the hidden patterns of data from a large-scale data warehouse by precise mathematical means, which is surpportable for decision making. With a structural equation model(SEM) analysis, this paper examines an important issue concerned to corporate governance - ownership structure, structure of board of directors and firm performance. Based on a sample of 520 public companies, it is found that ownership structure generally has significant effect on firm performance, with different indicators having different influence on performance, while there is no relationship between structure of board of directors and firm performance.