Do Corporate Governance Practices impact the risk of Chinese Firm?

In a corporate world, none of the organization is working without bearing risk, each organization must bear different types of risk, and some risks are common to all organization operating in same working condition so risk can be decided as essential factor of businesses. It cannot be eliminated but can only be controlled by different techniques. Corporate governance is a controlling mechanism. Best corporate governance practices improve the organization’s efficiency, so this study is conducted to find out the relation between different attributes of corporate governance and risk. The sample of the study consists of 860 non-financial Chinese firms from 2010–2024, which includes both State and non-State-owned enterprises. Fixed Effect Regression techniques are used to analyse the data. As corporate governance is considered as controlling mechanism within the organization; hence it impacts on risk of the firm. The result of the study shows that the attributes of corporate governance like Board size and board structure have significant impact on risk while concentrated ownership and the frequency of audit meeting have no impact on risk. Findings of the study can consider for making corporate governance policies that is the better governance structure which helps to improve the organizations efficiency. As Corporate governance is a vast phenomenon, so future studies can be conducted by using its different attributes. Paper Type: Research paper