A Review of Corporate Governance in China

14 Pages Posted: 10 May 2011

See all articles by Jingjing Yang

Jingjing Yang

Massey University

Jing Chi

Massey University - School of Economics and Finance

Martin R. Young

Massey University - School of Economics and Finance

Date Written: May 2011

Abstract

The paper reviews the literature on internal and external corporate governance mechanisms in China. Chinese regulatory bodies have made considerable efforts to improve the corporate governance of listed firms. However, research has shown that most of the governance instruments that are effective in developed nations are less effective in China. We attribute the ineffectiveness to the large stake of the state in listed firms, strong political connections between listed firms and the government, and the lack of a truly independent judicial system. Some suggestions for making corporate governance more effective in China are provided.

Suggested Citation

Yang, Jingjing and Chi, Jing and Young, Martin R., A Review of Corporate Governance in China (May 2011). Asian-Pacific Economic Literature, Vol. 25, Issue 1, pp. 15-28, 2011. Available at SSRN: https://ssrn.com/abstract=1837162 or http://dx.doi.org/10.1111/j.1467-8411.2011.01283.x

Jingjing Yang

Massey University

Private Bag 11 222
Palmerston North, Manawatu 4442
New Zealand

Jing Chi

Massey University - School of Economics and Finance ( email )

Private Bag 11-222
Palmerston North,, 4442
New Zealand
+64 6 3569099 Ext. 84048 (Phone)
+64 6 350 5651 (Fax)

Martin R. Young

Massey University - School of Economics and Finance ( email )

Private Bag 11222
Palmerston North, 4442
New Zealand

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