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The role of financial institutions in the corporate governance of listed Chinese companies

Yuan, Rongli, Milonas, Nikolaos and Xiao, Jason 2006. The role of financial institutions in the corporate governance of listed Chinese companies. [Discussion Paper]. Discussion Papers in Accounting and Finance, Cardiff: Cardiff University.

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Abstract

This paper explores the role of Chinese financial institutions in corporate governance of listed companies through interviews with both senior managers of financial institutions and directors of listed companies. Our results show that while most securities companies are passive investors, a good proportion of the active mutual funds help their portfolio companies prepare financial forecasts, standardise their operations, raise external funds and strengthen their company image in the capital markets. This limited role can be attributed to a number of factors specific to the Chinese context including highly concentrated state ownership, an immature regulatory environment, inadequate transparency and disclosure of financial information, and weak corporate governance within financial institutions themselves. It could also be affected by several other factors that are considered to cause institutional passivity in developed countries such as conflict of interest, monitoring costs, and lack of expertise.

Item Type: Monograph (Discussion Paper)
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Publisher: Cardiff University
Date of First Compliant Deposit: 30 March 2016
Last Modified: 04 Jun 2017 08:25
URI: http://orca.cf.ac.uk/id/eprint/77682

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