Developmental State and Corporate Governance in 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
Language
English
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