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China's Corporate Governance: Emerging Issues and Problems

Published online by Cambridge University Press:  29 February 2012

YUAN GEORGE SHAN  and
DAVID K. ROUND
YUAN GEORGE SHAN
Affiliation:
Business School, The University of Adelaide, 10 Pulteney Street, Adelaide, SA 5005, Australia Email: george.shan@adelaide.edu.au
DAVID K. ROUND
Affiliation:
School of Commerce, University of South Australia, GPO Box 2471, Adelaide, SA 5001, Australia Email: david.round@unisa.edu.au
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Abstract

As China approaches economic superpower status, its need to achieve considerably higher standards of corporate governance is becoming paramount. Despite impressive recent advances in its capital and stock exchange markets, the on-going overhang of state ownership in its former state-owned enterprises, together with an unwieldy and ineffective dual board governance system, has left China facing major corporate governance problems that will deter the private investment necessary for its continued growth. This paper illustrates these problems, and suggests possible reforms that will provide the foundation for the efficient further development of China's capital markets that is needed to help China become a major economic superpower.

Type
Research Article
Information
Modern Asian Studies , Volume 46 , Issue 5 , September 2012 , pp. 1316 - 1344
Copyright
Copyright © Cambridge University Press 2012

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87 Ibid., p. 48.

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