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The History of Corporate Ownership in China: State Patronage, Company Legislation, and the Issue of Control

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Author Info
WILLIAM N. GOETZMANN () (Yale School of Management - International Center for Finance)
ELISABETH KÖLL () (Case Western Reserve University - Department of History)

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Abstract

This paper examines the emergence of corporate ownership in China from the final decades of the Qing empire in the late 19th century to the early Republican period in the 1910s and 1920s. By analyzing the actual process of incorporation, the development of the legal and financial environment, in particular the role of the state, we ask whether the top-down approach, in which the central government established a legal framework for corporate enterprise based on Western models and the assumption that it would work as it did for Western firms and markets, was a viable approach to the modernization of a financial system traditionally dominated by family businesses and economic state patronage. Using business records from turn-of-the-century Chinese corporate companies, this paper argues that the government's top-down approach, while clearly well-intentioned, created a framework which only insufficiently promoted the system of corporate capitalism in pre-war China.

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Paper provided by Yale School of Management in its series Yale School of Management Working Papers with number ysm450.

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Date of creation: 14 Apr 2005
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Handle: RePEc:ysm:somwrk:ysm450

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Find related papers by JEL classification:
G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. William N. Goetzmann & Andrey Ukhov & Ning Zhu, 2004. "China and the World Financial Markets 1870-1930:," Yale School of Management Working Papers ysm9, Yale School of Management. [Downloadable!]
  2. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May. [Downloadable!] (restricted)
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  1. Yoser Gadhoum, 2006. "Power of Ultimate Controlling Owners: A Survey of Canadian Landscape," Journal of Management and Governance, Springer, vol. 10(2), pages 179-204, 05. [Downloadable!] (restricted)
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