Empirical research on corporate governance in china: A review and new directions for the future

Wei Shen, Qiong Zhou, Chung Ming Lau

Research output: Contribution to journalReview article

6 Citations (Scopus)

Abstract

The ownership structure of Chinese firms has experienced significant changes over the last three decades, including the development of a fast growing stock market through which a large number of domestic firms have become publicly traded corporations. These changes have drawn increasing attention from researchers of corporate governance. In this article, we review the empirical research on corporate governance in China, with a focus on the internal and external governance mechanisms that have been investigated and the findings about the effectiveness of these mechanisms. On the basis of our review of 132 studies, we summarize the major findings and discuss the limitation of agency theory in understanding the governance issue in Chinese firms. We offer several ideas (e.g., the importance of the social context, new conceptualization of governance, different outcomes of governance, and data/method issues) for a new agenda to guide future research in the corporate governance of firms operating in the Chinese and other emerging economy contexts.

Original languageEnglish (US)
Pages (from-to)41-73
Number of pages33
JournalManagement and Organization Review
Volume12
Issue number1
DOIs
StatePublished - Mar 1 2016

Fingerprint

China
Empirical research
Corporate governance
Governance
Chinese firms
Social context
Agenda
Emerging economies
Domestic firms
Ownership structure
Agency theory
Stock market
Conceptualization
Governance mechanisms

Keywords

  • Board of directions
  • Chinese firms
  • Corporate governance
  • Managerial incentives
  • Ownership structure
  • State ownership

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

Cite this

Empirical research on corporate governance in china : A review and new directions for the future. / Shen, Wei; Zhou, Qiong; Lau, Chung Ming.

In: Management and Organization Review, Vol. 12, No. 1, 01.03.2016, p. 41-73.

Research output: Contribution to journalReview article

@article{291ffc6640a3465eadd02ccbc1ef2921,
title = "Empirical research on corporate governance in china: A review and new directions for the future",
abstract = "The ownership structure of Chinese firms has experienced significant changes over the last three decades, including the development of a fast growing stock market through which a large number of domestic firms have become publicly traded corporations. These changes have drawn increasing attention from researchers of corporate governance. In this article, we review the empirical research on corporate governance in China, with a focus on the internal and external governance mechanisms that have been investigated and the findings about the effectiveness of these mechanisms. On the basis of our review of 132 studies, we summarize the major findings and discuss the limitation of agency theory in understanding the governance issue in Chinese firms. We offer several ideas (e.g., the importance of the social context, new conceptualization of governance, different outcomes of governance, and data/method issues) for a new agenda to guide future research in the corporate governance of firms operating in the Chinese and other emerging economy contexts.",
keywords = "Board of directions, Chinese firms, Corporate governance, Managerial incentives, Ownership structure, State ownership",
author = "Wei Shen and Qiong Zhou and Lau, {Chung Ming}",
year = "2016",
month = "3",
day = "1",
doi = "10.1017/mor.2015.11",
language = "English (US)",
volume = "12",
pages = "41--73",
journal = "Management and Organization Review",
issn = "1740-8776",
publisher = "Wiley-Blackwell",
number = "1",

}

TY - JOUR

T1 - Empirical research on corporate governance in china

T2 - A review and new directions for the future

AU - Shen, Wei

AU - Zhou, Qiong

AU - Lau, Chung Ming

PY - 2016/3/1

Y1 - 2016/3/1

N2 - The ownership structure of Chinese firms has experienced significant changes over the last three decades, including the development of a fast growing stock market through which a large number of domestic firms have become publicly traded corporations. These changes have drawn increasing attention from researchers of corporate governance. In this article, we review the empirical research on corporate governance in China, with a focus on the internal and external governance mechanisms that have been investigated and the findings about the effectiveness of these mechanisms. On the basis of our review of 132 studies, we summarize the major findings and discuss the limitation of agency theory in understanding the governance issue in Chinese firms. We offer several ideas (e.g., the importance of the social context, new conceptualization of governance, different outcomes of governance, and data/method issues) for a new agenda to guide future research in the corporate governance of firms operating in the Chinese and other emerging economy contexts.

AB - The ownership structure of Chinese firms has experienced significant changes over the last three decades, including the development of a fast growing stock market through which a large number of domestic firms have become publicly traded corporations. These changes have drawn increasing attention from researchers of corporate governance. In this article, we review the empirical research on corporate governance in China, with a focus on the internal and external governance mechanisms that have been investigated and the findings about the effectiveness of these mechanisms. On the basis of our review of 132 studies, we summarize the major findings and discuss the limitation of agency theory in understanding the governance issue in Chinese firms. We offer several ideas (e.g., the importance of the social context, new conceptualization of governance, different outcomes of governance, and data/method issues) for a new agenda to guide future research in the corporate governance of firms operating in the Chinese and other emerging economy contexts.

KW - Board of directions

KW - Chinese firms

KW - Corporate governance

KW - Managerial incentives

KW - Ownership structure

KW - State ownership

UR - http://www.scopus.com/inward/record.url?scp=85006421834&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85006421834&partnerID=8YFLogxK

U2 - 10.1017/mor.2015.11

DO - 10.1017/mor.2015.11

M3 - Review article

AN - SCOPUS:85006421834

VL - 12

SP - 41

EP - 73

JO - Management and Organization Review

JF - Management and Organization Review

SN - 1740-8776

IS - 1

ER -