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1 results

  • Developmental State and Corporate Governance in China

  • Victor Nee, Sonja Opper, Sonia Wong
  • Journal:
    Management and Organization Review / Volume 3 / Issue 1 / March 2007
    Published online by Cambridge University Press:
    02 February 2015, pp. 19-53

  • China's state-guided economic miracle has revitalized a long-standing and unsettled debate about the role of government in transformative economic development. In a firm-level study of corporate governance we examine whether direct state involvement actually makes a positive contribution to the economic performance of newly incorporated firms in China's urban economy. We show that direct intervention into the governance of firms is likely to yield negative economic effects at the firm level. We infer from our findings that it must be other types of government intervention external to the firm that explain the success of China's developmental state in promoting rapid economic growth.