Corporate Governance and Enterprise Reform in China : Building the Institutions of Modern Markets

This book explores the short- to medium-term corporate governance issues that China is encountering during the course of corporation and ownership transformation of its enterprise sector. The study looks at companies participating in the two main forms of ownership diversification: listed companies and small and medium enterprises whose ownership structure is dominated by insiders. The focus is on the new mechanisms and stakeholders emerging during the process of ownership diversification and their role in corporate governance. Recommended priorities for action are based on the following guiding principles: 1) Corporate governance scandals in emerging and developed markets indicate that there is no perfect corporate governance model. An effective corporate governance system should be capable of identifying weaknesses before they develop into systemic problems. 2) The institutional mechanisms of corporate governance comprise a system that can employ alternative yet complementary instruments of control to effectuate changes in companies' behavior. Based on these principles, the following areas emerge as recommended priorities for policy action: a) alleviate the negative impact of dominant state ownership on market discipline and on the regulatory capacity of the state; b) building an institutional investor base; and c) strengthening the role of banks in corporate governance.

Bibliographic Details

Main Authors:	Tenev, Stoyan, Zhang, Chunlin, Brefort, Loup
Language:	English en_US
Published:	Washington, DC: World Bank and the International Finance Corporation 2002-03
Subjects:	CORPORATE GOVERNANCE, ENTERPRISE RESTRUCTURING, ENTERPRISE DEVELOPMENT, INSTITUTION BUILDING, LISTED COMPANIES, SMALL & MEDIUM SCALE ENTERPRISES, ENTERPRISE CONTROL, WORKER PARTICIPATION, WORKER RIGHTS, CREDITORS, INVESTORS, EQUITY MARKETS, STOCK MARKETS, DISCLOSURE OF INFORMATION ACCOUNTING, ACCOUNTING STANDARDS, ADMINISTRATIVE PROCESS, ASSET MANAGEMENT, AUDITORS, BANKING SYSTEM, BANKRUPTCY, BANKS, BOARDS OF DIRECTORS, BUREAUCRACY, BUREAUCRATIC SYSTEM, BUSINESS ENTERPRISES, CADRES, CAPITAL MARKETS, COMMERCIAL BANKS, COMMUNIST, COMMUNIST PARTY, COMPANY, COMPANY DIRECTORS, COMPANY LAW, CORPORATE CONTROL, CORPORATE GOVERNANCE MECHANISMS, CORPORATE GOVERNANCE SYSTEM, CORPORATE RESTRUCTURING, CORPORATION, CORPORATIONS, CORPORATIZATION, DEBT, DECISION-MAKING, DEGREE OF AUTONOMY, DISCLOSURE, DIVERSIFICATION, ENTERPRISE REFORM, ENTREPRENEURS, FINANCIAL DATA, FINANCIAL SECTOR, FINANCIAL SYSTEM, FIRMS, FISCAL, FISCAL DECENTRALIZATION, FOREIGN EXCHANGE, GOOD GOVERNANCE, GOVERNMENT AGENCIES, GOVERNMENT EQUITY, GOVERNMENT INSTITUTIONS, GOVERNMENT OFFICIALS, GOVERNMENT OWNERSHIP, INSTITUTIONAL ARRANGEMENTS, INSTITUTIONAL CAPACITY, INSTITUTIONAL FOUNDATIONS, INSTITUTIONAL INVESTORS, INSTITUTIONAL MECHANISMS, INSTITUTIONAL STRUCTURE, INVESTMENT BANKING, JOINT VENTURES, LABOR MARKET, LABOR MARKETS, LAWS, LEGAL FRAMEWORK, LEGISLATION, LOCAL GOVERNMENT, MARKET DISCIPLINE, MEDIUM ENTERPRISES, NONPERFORMING LOANS, PARENT COMPANIES, PENALTIES, POLITICAL CONTROL, PRIVATE EQUITY MARKETS, PRIVATIZATION, REGULATORY BODIES, REGULATORY FRAMEWORK, REGULATORY INTERVENTIONS, RETIREMENT, REVENUE COLLECTION, REVOLUTION, SHAREHOLDERS, SMALL BUSINESS, SOCIAL STABILITY, SOCIAL WELFARE, STATE CONTROL, STATE ENTERPRISE, STATE OWNERSHIP, STATE SECTOR, STATE-OWNED ENTERPRISES, TAX LIABILITIES, TAXATION, TECHNICAL ASSISTANCE, TRADE UNIONS, TRUST FUNDS, TVE, VENTURE CAPITAL, VOTING,
Online Access:	http://documents.worldbank.org/curated/en/2002/03/2014507/corporate-governance-enterprise-reform-china-building-institutions-modern-markets https://hdl.handle.net/10986/15237
Tags:	Add Tag No Tags, Be the first to tag this record!