Corporate Governance Research Paper

2117 Words Jan 28th, 2013 9 Pages
Corporate Governance Practices in China
Scope Statement
Corporate governance is the system by which companies are directed and controlled. Corporate Governance is important because it is part of the institutional infrastructure (laws, regulations, institutions and enforcement mechanisms) underlying sound economic performance.
I would like to perform my research on the topic of corporate governance practices in China for the following reasons:
The political system in China is unique, not like other democratic countries, the Chinese Communist Party is the sole party in power in China. It is a monolithic, monopolistic ruling party that dominated Chinese political, economic, social and cultural life. Because of this unique political
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The limitation of this article is it only discusses Chinese corporate governance on state-owned enterprises and listed companies and attempts to explain some complicated features of its discourse, laws and institutions.
This source is related to my topic as it focuses primarily on state-owned enterprises. Theoretic analysis provides a starting place for more focused research on specific topic that interested me now and in the future.

Lin, C., Ma, Y., & Su, D.W. (2009). Corporate governance and firm efficiency: Evidence from China’s publicly listed firms. Retrieved June 8, 2012, from
In this paper, the researchers investigate whether and to what extent the governance mechanisms affect productive efficiency in a sample of 461 publicly listed manufacturing firms in China between 1999 and 2002. At the same time, this paper also examines a number of unique corporate governance practices (e.g., complex ownership structure, controlling shareholder identities, and outside directors and supervisors) inherent in the reform of SOEs in China. The researchers applied a new developed two-stage, bootstrapping data envelopment analysis approach to examine the relationship between firm efficiency and corporate governance.
This study is relevant to my topic as it provides the choice of empirical models and estimation techniques. The analytical process of this study is clear and easy to understand
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