Title

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

Journal of Corporate Finance

Volume

72

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