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Effective corporate board structure and agency problems: Evidence from China’s economic transition

This study investigates the determinants of Chinese board structure during the economic transition from the year 2000 to 2012. It uses principal component analysis with fixed effects estimation to test three hypotheses – the scope of operation hypothesis, monitoring hypothesis and bargaining hypothe...

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Main Authors: Zhang, C., Cheong, K.C., Rasiah, R.
Format: Article
Published: Institute of China Studies 2016
Subjects:
HB Economic Theory
HC Economic History and Conditions
Online Access:http://eprints.um.edu.my/18672/
https://www.um.edu.my/docs/default-source/ics/ics-ijcs/full-issue-7-2.pdf?sfvrsn=2
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spelling my.um.eprints.186722018-05-15T04:15:47Z http://eprints.um.edu.my/18672/ Effective corporate board structure and agency problems: Evidence from China’s economic transition Zhang, C. Cheong, K.C. Rasiah, R. Zhang, C. HB Economic Theory HC Economic History and Conditions This study investigates the determinants of Chinese board structure during the economic transition from the year 2000 to 2012. It uses principal component analysis with fixed effects estimation to test three hypotheses – the scope of operation hypothesis, monitoring hypothesis and bargaining hypothesis – using different subsamples. Explained without the use of mathematical rigor, the paper’s main findings are that Chinese stock market liberalization and the ultimate controlling shareholder are important factors when constituting board structure. After the split-share structure reform, China tends to have an outsider-dominated board structure. While private-controlled enterprises are more efficient in constituting board structure, CEOs of state-controlled enterprises have more bargaining power over board structure. Institute of China Studies 2016 Article PeerReviewed Zhang, C. and Cheong, K.C. and Rasiah, R. and Zhang, C. (2016) Effective corporate board structure and agency problems: Evidence from China’s economic transition. International Journal of China Studies, 7 (2). pp. 199-214. ISSN 2180-3250 https://www.um.edu.my/docs/default-source/ics/ics-ijcs/full-issue-7-2.pdf?sfvrsn=2
institution Universiti Malaya
building UM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaya
content_source UM Research Repository
url_provider http://eprints.um.edu.my/
topic HB Economic Theory
HC Economic History and Conditions
spellingShingle HB Economic Theory
HC Economic History and Conditions
Zhang, C.
Cheong, K.C.
Rasiah, R.
Zhang, C.
Effective corporate board structure and agency problems: Evidence from China’s economic transition
description This study investigates the determinants of Chinese board structure during the economic transition from the year 2000 to 2012. It uses principal component analysis with fixed effects estimation to test three hypotheses – the scope of operation hypothesis, monitoring hypothesis and bargaining hypothesis – using different subsamples. Explained without the use of mathematical rigor, the paper’s main findings are that Chinese stock market liberalization and the ultimate controlling shareholder are important factors when constituting board structure. After the split-share structure reform, China tends to have an outsider-dominated board structure. While private-controlled enterprises are more efficient in constituting board structure, CEOs of state-controlled enterprises have more bargaining power over board structure.
format Article
author Zhang, C.
Cheong, K.C.
Rasiah, R.
Zhang, C.
author_facet Zhang, C.
Cheong, K.C.
Rasiah, R.
Zhang, C.
author_sort Zhang, C.
title Effective corporate board structure and agency problems: Evidence from China’s economic transition
title_short Effective corporate board structure and agency problems: Evidence from China’s economic transition
title_full Effective corporate board structure and agency problems: Evidence from China’s economic transition
title_fullStr Effective corporate board structure and agency problems: Evidence from China’s economic transition
title_full_unstemmed Effective corporate board structure and agency problems: Evidence from China’s economic transition
title_sort effective corporate board structure and agency problems: evidence from china’s economic transition
publisher Institute of China Studies
publishDate 2016
url http://eprints.um.edu.my/18672/
https://www.um.edu.my/docs/default-source/ics/ics-ijcs/full-issue-7-2.pdf?sfvrsn=2
_version_ 1643690761362866176
score 13.211869

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