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How to evaluate company directors at state owned enterprises? A framework of virtue and competence based on the Chinese experience

Author

Listed:
  • Xuhong Xu
  • Tiancheng Hu
  • Rui Guo
  • Shang Chen
  • Lutao Ning

Abstract

Purpose - This paper proposes a framework for director evaluation in the context of Chinese state-owned enterprises (SOEs), taking into account the influences of traditional and modern Chinese ideologies. Design/methodology/approach - Following the Delphi method, a series of semi-structured interviews were conducted with Chinese SOE directors. Findings - The framework used has been validated by examining seven dimensions of virtue and four dimensions of competence functions in Chinese SOEs. Effective and representative characteristics of each dimension are identified through interviews. Originality/value - First, through this research, indicators of virtue have been materialized and those of competence have been specified in a broader range. Second, this research provides advice for training of candidate directors whose experience were in private firms before they step in as SOE directors.

Suggested Citation

  • Xuhong Xu & Tiancheng Hu & Rui Guo & Shang Chen & Lutao Ning, 2023. "How to evaluate company directors at state owned enterprises? A framework of virtue and competence based on the Chinese experience," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 20(1), pages 230-258, April.
  • Handle: RePEc:eme:ijoemp:ijoem-01-2022-0150
    DOI: 10.1108/IJOEM-01-2022-0150
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    More about this item

    Keywords

    State-owned enterprises; Director evaluation; Virtue and competence; China; Corporate governance; Interview; G32; G34; L32; M14;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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