Enterprise ownership and control in China: Governance with a Chinese twist

Daniel HO*, K L Alex LAU, Angus YOUNG

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    8 Citations (Scopus)


    Inefficient state-owned enterprises in China were compelled to restructure to remain competitive, which resulted in phenomenal economic growth. While economically successful, China did not initially have any indigenous laws to regulate companies or control this growth, so Chinese lawmakers had to transplant corporate laws from developed Western countries. However, this transplantation process did not occur without problems, and certain domestic attributes had to be supplemented in corporate legislation to correspond with Chinese socialistic objectives and cultural values. This article analyzes the key attributes of Chinese corporate governance and regulations concerning shareholders' rights and, in the process, highlights provisions that are peculiar and characterized as uniquely Chinese, ultimately raising more questions than answers for shareholders.

    Original languageEnglish
    Pages (from-to)575-582
    Number of pages8
    JournalBusiness Horizons
    Issue number6
    Publication statusPublished - Nov 2012

    Scopus Subject Areas

    • Business and International Management
    • Marketing

    User-Defined Keywords

    • Chinese company law
    • Chinese corporate governance
    • Chinese joint stock company
    • Chinese law reform
    • Chinese LLC
    • State-owned enterprises (SOE)


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