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Institutional Environment, Community Government, and Corporate Governance: Understanding China's Township-Village Enterprises Author info | Abstract | Publisher info | Download info | Related research | Statistics Jiahua Che
Yingyi Qian
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We study China's township-village enterprises (TVES) from an organizational perspective with a focus on governance. Unlike most previous studies, we interpret the firm boundaries of TVEs at the community level rather than the enterprise level. From this perspective, we analyze the central role that community governments play in TVE governance as an organizational response to the imperfect institutional environment of both state and market. Specifically, we show that the community government's involvement in TVEs helps overcome the problems of state predation and under-financing of private enterprises. We also explain why TVE governance leads to harder budget constraints than state-owned enterprises.
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Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number
59.
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Date of creation: 01 Jan 1998Date of revision:
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Keywords: institutions ; corporate governance ; community ; township-village enterprises ; China ; Other versions of this item:
Article Che, Jiahua & Qian, Yingyi, 1998.
"Institutional Environment, Community Government, and Corporate Governance: Understanding China's Township-Village Enterprises ,"
Journal of Law, Economics and Organization ,
Oxford University Press, vol. 14(1), pages 1-23, April.
Paper This paper has been announced in the following NEP Reports :
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Jiahua Che & Yingyi Qian, .
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