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Corporatisation and Corporate Governance in China’s Economic Transition

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  • Cyril  Lin

Abstract

China has sought to improve enterprise performance not through privatisation as in other transition economies, but through corporatisation as means of improving corporate governance. Actual governance practices of corporatised Chinese firms are however seriously defective, characterized by excessive power of CEO`s, insider control and collusion, lack of safeguards for minority shareholders and weak transparency. These shortcomings are attributable to factors such as cultural and political traditions, uncompetitiveness of markets, poor legal enforcement, weak debt and equity markets, but above all to continued state dominance in ownership and control of the corporate sector and listed companies. Corporatisation, nevertheless, has created a regime conducive to implementing measures for improving corporate governance.

Suggested Citation

  • Cyril  Lin, 2000. "Corporatisation and Corporate Governance in China’s Economic Transition," Economics Series Working Papers 20, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:20
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    References listed on IDEAS

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    Cited by:

    1. Qi Quan & N. Huyghebaert, 2004. "Privatization. Issues at Stake in the Case of China," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(4), pages 647-687.

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    More about this item

    Keywords

    Chinese economy; corporate governance; SOEs reform; transition;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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