A critique of corporate governance in China

Abstract

Purpose

This paper aims to offer a critique of corporate governance in China.

Design/methodology/approach

The critique is based upon a literature review and secondary data sources.

Findings

The Chinese Government has made efforts to strengthen the effectiveness of corporate governance in state‐owned enterprises. However, existing research shows that some governance mechanisms that are effective in Western countries have no significant or negative impacts on firm performance in China. An apparent reason for this is the strong relationship between state‐owned enterprises and the government.

Originality/value

Policy implications are offered as a means to improve corporate governance in China.

Citation

Guo, L., Smallman, C. and Radford, J. (2013), "A critique of corporate governance in China", International Journal of Law and Management, Vol. 55 No. 4, pp. 257-272. https://doi.org/10.1108/IJLMA-10-2011-0012