Developmental State and Corporate Governance in China
Management and Organization Review
ﬁrm performance, ﬁscal federalism, market transition, politicized capitalism, soft-budget constraint, state-ﬁrm relations
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.
© 2007 The Authors
Journal compilation © 2007 Blackwell Publishing Ltd
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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