This paper aims to find out the relationship between corporate governance and financial performance, using the data of listed IT companies in China and identify whether the implication of Chinese corporate governance literature have any difference compared with western ones. Moreover, I also want to know whether shareholders benefit from appointing more outsiders to boards. In order to test the above mentioned correlation, board size, independent directors and CEO duality will be used to test corporate governance and ROS will be used as dependent variable to examine financial performance. The hypotheses will be tested using 992 management boards from IT companies in China during the period of 2004 – 2013. The results of the analyses show that board size negatively influences financial performance, and independent directors have a positive effect on financial performance. Last but not least, CEO duality positively affects financial performance.