Title

Developmental State and Corporate Governancein China

Document Type

Journal article

Source Publication

Management and Organization Review

Publication Date

2007

Volume

3

Issue

1

First Page

19

Last Page

53

Keywords

firm performance, fiscal federalism, market transition, politicized capitalism, soft-budget constraint, state-firm relations

Abstract

China’s state-guided economic miracle has revitalized a long-standing and unsettled debate about the role of government in transformative economic development. In a firm-level study of corporate governance we examine whether direct state involvement actually makes a positive contribution to the economic performance of newly incorporated firms in China’s urban economy. We show that direct intervention into the governance of firms is likely to yield negative economic effects at the firm level. We infer from our findings that it must be other types of government intervention external to the firm that explain the success of China’s developmental state in promoting rapid economic growth.

DOI

10.1111/j.1740-8784.2007.00061.x

Print ISSN

17408776

E-ISSN

17408784

Publisher Statement

© 2007 The Authors

Journal compilation © 2007 Blackwell Publishing Ltd

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Nee, V., Opper, S. and Wong, S. (2007), Developmental State and Corporate Governance in China. Management and Organization Review, 3(1) : 19–53. doi: 10.1111/j.1740-8784.2007.00061.x