A Grounded Theory Exposition of the Role of the Supervisory Board in China

Jason Zezhong Xiao*, Jay Dahya, Zhijun LIN

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

72 Citations (Scopus)

Abstract

This paper reports the findings of an investigation, through a series of interviews, into the role of the supervisory board (SB) in Chinese listed companies. The interviews were conducted and analysed using the grounded theory methodology. It is found that the SB performs one of four roles under the Chinese corporate environment: an honoured guest, a friendly advisor, a censored watchdog or an independent watchdog. The role of the SB is dependent on a variety of factors: SB characteristics, power relations between the Board of Directors and the SB, shareholding structure, the influence of the Communist Party of China and government, the role of independent directors and the requirements of the corporate law.

Original languageEnglish
Pages (from-to)39-55
Number of pages17
JournalBritish Journal of Management
Volume15
Issue number1
DOIs
Publication statusPublished - Mar 2004

Scopus Subject Areas

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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