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An Empirical Taxonomy of SOE Governance in Transitional China

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  • Jinyang Hua
  • Paul Miesing
  • Mingfang Li

Abstract

China’s State-Owned Enterprises (SOEs) traditionally have been governed by the Communist Party. Privatization has brought greater numbers of investors who have a stake and demand a voice in how SOEs are managed. Three traditional governance perspectives are agency theory, resource dependence, and institutional theory, but China’s transition introduces several additional governance approaches. Are “capitalism with Chinese characteristics” and “bureaucratic entrepreneurialism” paradoxes? Based on initial interviews of SOE executives, a survey of top managers and board chairs of listed companies, and subsequent interviews and observations in select case companies, this paper develop a taxonomy of SOE governance that now exists in China. Two of the approaches represent the extremes of the old state-centered regimes and the new shareholder-centered regimes. Considering China’s historical and cultural contexts coupled with its current stage of economic transition, two additional approaches to corporate governance are to have a vacuum as neither the state nor shareholders dominate or – in unique contrast to other countries – a hybrid of both. Copyright Springer Science+Business Media, LLC 2006

Suggested Citation

  • Jinyang Hua & Paul Miesing & Mingfang Li, 2006. "An Empirical Taxonomy of SOE Governance in Transitional China," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 10(4), pages 401-433, November.
    • Handle: RePEc:kap:jmgtgv:v:10:y:2006:i:4:p:401-433
    DOI: 10.1007/s10997-006-9008-z
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    3. Jun Wu & Shaomin Li & David D. Selover, 2012. "Foreign Direct Investment vs. Foreign Portfolio Investment," Management International Review, Springer, vol. 52(5), pages 643-670, October.
    4. Michael Firth & Sonia Wong & Yong Yang, 2014. "The double-edged sword of CEO/chairperson duality in corporatized state-owned firms: evidence from top management turnover in China," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(1), pages 207-244, February.
    5. Marguerite Schneider & Lori Ryan, 2011. "A review of hedge funds and their investor activism: do they help or hurt other equity investors?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 15(3), pages 349-374, August.
    6. Wang, Yang & Zhang, Yifei & Kang, Wei & Ahmed, Ahmed Hassan, 2022. "Female analysts and COVID-19 corporate donation," Emerging Markets Review, Elsevier, vol. 53(C).
    7. Tasneem Sadiq & Rob van Tulder & Karen Maas, 2022. "Building a Taxonomy of Hybridization: An Institutional Logics Perspective on Societal Impact," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    8. Hui Wang & Anyin Jiang & Fayyaz Ahmad & Nabila Abid & Abbas Ali Chandio, 2024. "Attribute imbalances and innovation implementation based on grounded theory: A case of Chinese enterprises in Gansu Province," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 407-423, February.

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