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A Comparative Study of Chinese SOE Firm's Boards and Private Firm's Boards

Author

Listed:
  • Shenghui Tong

    (Chinese Academy of Finance and Development, Central University of Finance and Economics)

  • Eddy Junarsin

    (Faculty of Economics and Business, Universitas Gadjah Mada)

  • Chuntao Li

    (School of Finance, Zhongnan University of Economics and Law)

Abstract

Using 3,019 listed firms in China divided into two subsamples, we compare the characteristics of corporate governance between private firms and State Owned Enterprise (SOE) firms after they have gone public on the Chinese stock markets. We examine the differences in board structure between these two types of firms. Results show that private firms and SOE firms have different governance characteristics. Our analysis indicates that in China, although private firms and SOE firms have theoretically become public firms, the SOE firms are relatively superior to the private firms in corporate governance efficiency, especially in appointing high-caliber independent directors.

Suggested Citation

  • Shenghui Tong & Eddy Junarsin & Chuntao Li, 2015. "A Comparative Study of Chinese SOE Firm's Boards and Private Firm's Boards," Annals of Economics and Finance, Society for AEF, vol. 16(2), pages 291-314, November.
    • Handle: RePEc:cuf:journl:y:2015:v:16:i:2:tong
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    References listed on IDEAS

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    Cited by:

    1. Miążek Radosław, 2021. "Corporate governance in state-owned enterprises. A systematic literature review: an international perspective," International Journal of Contemporary Management, Sciendo, vol. 57(4), pages 1-13, December.
    2. Liqiang Chen & Hong Fan & Xiaofei Song, 2023. "Impact of professor‐directors on Chinese firms' environmental performance," International Review of Finance, International Review of Finance Ltd., vol. 23(4), pages 696-720, December.

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    More about this item

    Keywords

    Board of directors; Firm performance; Chinese listed firms; Private firms; State-owned enterprises;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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