Political Control, Corporate Governance and Firm Value: The Case of China
Document Type
Article
Date of Original Version
2-1-2022
Abstract
We examine whether requiring a Party committee to lead corporate governance at listed state-owned enterprises (SOEs) affects firm value in China. We find that the market reacts positively to the inclusion of Party leadership in SOEs' governance structure and that the prospect of a crackdown on SOE corruption is likely to be the reason. The China governance model is strikingly different from other known models, and our findings suggest that a convergence of the corporate governance system of different countries due to globalization might not be the only outcome.
Publication Title, e.g., Journal
Journal of Corporate Finance
Volume
72
Citation/Publisher Attribution
Xie, Sujuan, Bingxuan Lin, and Jingjing Li. "Political Control, Corporate Governance and Firm Value: The Case of China." Journal of Corporate Finance 72, (2022). doi: 10.1016/j.jcorpfin.2022.102161.
