Protecting the State from Itself? Regulatory Interventions in Corporate Governance and the Financing of China's 'State Capitalism'

Regulating the Visible Hand? The Institutional Implications of Chinese State Capitalism, edited by B. Liebman and C. Milhaupt. 2015, Forthcoming

U of Michigan Public Law Research Paper No. 423

U of Michigan Law & Econ Research Paper No. 14-017

35 Pages Posted: 29 Oct 2014 Last revised: 28 Mar 2015

Date Written: January 13, 2015

Abstract

From the start of China’s "corporatization without privatization" process in the late 1980s, a Chinese corporate governance regime apparently shareholder-empowering and determined by enabling legal norms has been altered by mandatory governance mechanisms imposed by a state administrative agency, most often to protect minority shareholders against exploitation by the party state controlling shareholders which are the accepted powers of "state capitalism." This chapter reviews the path of that benign intervention and the structural reasons for it, and then speculates on why this novel identity of the Chinese party state’s "fragmented authoritarianism" continues to be tolerated by the same party state, and indeed how it is necessary for the continued financing of China’s "state capitalism."

Keywords: corporations, corporate law, corporate governance, securities regulation, China, PRC, Chinese law

JEL Classification: G18, G28, G34, G38, K22, K23, N25, N45, P26, P30, P34

Suggested Citation

Howson, Nicholas Calcina, Protecting the State from Itself? Regulatory Interventions in Corporate Governance and the Financing of China's 'State Capitalism' (January 13, 2015). Regulating the Visible Hand? The Institutional Implications of Chinese State Capitalism, edited by B. Liebman and C. Milhaupt. 2015, Forthcoming; U of Michigan Public Law Research Paper No. 423; U of Michigan Law & Econ Research Paper No. 14-017. Available at SSRN: https://ssrn.com/abstract=2515383

Nicholas Calcina Howson (Contact Author)

University of Michigan Law School ( email )

701 South State Street
3234 South Hall
Ann Arbor, MI 48109-3091
United States

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