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The corporate governance implications for China

Author

Listed:
  • Karbowski, Adam

Abstract

The following paper applies agency theory to China’s current economic reform program. The financial and regulatory structures necessary for an efficient corporate governance system in China are discussed. The analysis is focused on the Chinese state – owned enterprises (SOEs) and township and village enterprises (TVEs). The first section of the paper seeks to review the essence of the principal – agent problem. The second section explains the ‘success story’ of the Chinese TVEs. The final part of the paper assesses the efficiency of SOE corporate governance mechanisms in China.

Suggested Citation

  • Karbowski, Adam, 2009. "The corporate governance implications for China," MPRA Paper 73625, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:73625
    as

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    File URL: https://mpra.ub.uni-muenchen.de/73625/1/MPRA_paper_73625.pdf
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    References listed on IDEAS

    as
    1. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    2. Ross, Stephen A, 1973. "The Economic Theory of Agency: The Principal's Problem," American Economic Review, American Economic Association, vol. 63(2), pages 134-139, May.
    3. Dong, Xiao-yuan, 1998. "Employment and Wage Determination in China's Rural Industry: Investigation Using 1984-1990 Panel Data," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 485-501, September.
    4. Theodore Groves & Yongmiao Hong & John McMillan & Barry Naughton, 1994. "Autonomy and Incentives in Chinese State Enterprises," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 183-209.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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