Governing Stock Markets in Transition Economies: Lessons from China
AbstractJump-starting stock markets in transition economies has proved difficult. These countries lack effective legal governance structures and face severe information problems. Yet not all financial markets failed because of adverse conditions. Using China's initial stock market development as a case study, this article suggests that administrative governance can substitute for formal legal governance. At the core of this governance structure was the quota system. It created incentives for regional competition and decentralized information collection at the IPO stage. It was also used to punish regions and responsible officials when companies from their regions failed, as evidenced herein. Copyright 2005, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Oxford University Press in its journal American Law and Economics Review.
Volume (Year): 7 (2005)
Issue (Month): 1 ()
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://www.aler.oupjournals.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Fleming, Damon M. & Chow, Chee W. & Chen, Gongmeng, 2009. "Strategy, performance-measurement systems, and performance: A study of Chinese firms," The International Journal of Accounting, Elsevier, vol. 44(3), pages 256-278, September.
- Su, Chen & Brookfield, David, 2013. "An evaluation of the impact of stock market reforms on IPO under-pricing in China: The certification role of underwriters," International Review of Financial Analysis, Elsevier, vol. 28(C), pages 20-33.
- Cumming, Douglas & Johan, Sofia & Li, Dan, 2011. "Exchange trading rules and stock market liquidity," Journal of Financial Economics, Elsevier, vol. 99(3), pages 651-671, March.
- Du, Julan & Xu, Chenggang, 2009. "Which Firms went Public in China? A Study of Financial Market Regulation," World Development, Elsevier, vol. 37(4), pages 812-824, April.
- Yao, Yang & Yueh, Linda, 2009. "Law, Finance, and Economic Growth in China: An Introduction," World Development, Elsevier, vol. 37(4), pages 753-762, April.
- Xingqiang Du, 2013. "Does Religion Matter to Owner-Manager Agency Costs? Evidence from China," Journal of Business Ethics, Springer, vol. 118(2), pages 319-347, December.
- Liu, Qiao & Lu, Zhou (Joe), 2007. "Corporate governance and earnings management in the Chinese listed companies: A tunneling perspective," Journal of Corporate Finance, Elsevier, vol. 13(5), pages 881-906, December.
- Damon Fleming & Chee Chow & Wenbing Su, 2010. "An Exploratory Study of Chinese Accounting Students’ and Auditors’ Audit-specific Ethical Reasoning," Journal of Business Ethics, Springer, vol. 94(3), pages 353-369, July.
- Chenggang Xu, 2011. "The Fundamental Institutions of China's Reforms and Development," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 1076-1151, December.
- Rosenthal, Howard & Voeten, Erik, 2007. "Measuring legal systems," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 711-728, December.
- Ahrens, Joachim & Stark, Manuel, 2012. "Unabhängige Organisationen in autoritären Regimes: Widerspruch in sich oder effektives Instrument von Developmental States?," PFH Forschungspapiere/Research Papers 2012/09, PFH Private University of Applied Sciences, Göttingen.
- Aitken, Michael & Cumming, Douglas & Zhan, Feng, 2013. "Exchange trading rules, surveillance and insider trading," CFS Working Paper Series 2013/15, Center for Financial Studies (CFS).
- Michael Firth & Sonia Wong & Yong Yang, 2014. "The double-edged sword of CEO/chairperson duality in corporatized state-owned firms: evidence from top management turnover in China," Journal of Management and Governance, Springer, vol. 18(1), pages 207-244, February.
- Ahrens, Joachim & Jünemann, Patrick, 2010. "Transitional institutions, institutional complementarities and economic performance in China: A 'Varieties of Capitalism' approach," Discourses in Social Market Economy 2010-11, OrdnungsPolitisches Portal (OPO).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.