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Developmental State and Corporate Governance in China

Published online by Cambridge University Press:  02 February 2015

Victor Nee ,
Sonja Opper  and
Sonia Wong
Victor Nee
Affiliation:
Cornell University, USA
Sonja Opper
Affiliation:
Lund University, Sweden
Sonia Wong
Affiliation:
Lingnan University, China
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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.

Keywords

firm performancefiscal federalismmarket transitionpoliticized capitalismsoft-budget constraintstate-firm relations市场转型政府一公司关系公司绩效经济增长政治化的资本主义财务联邦制软预算约束
Type
Articles
Information
Management and Organization Review , Volume 3 , Issue 1 , March 2007 , pp. 19 - 53
Copyright
Copyright © International Association for Chinese Management Research 2007

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