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Local versus global: Corporate governance practices in Chinese domestic and overseas companies

Local versus global: Corporate governance practices in Chinese domestic and overseas companies Globalization has provided Chinese companies with a great opportunity to access international capital markets through various channels such as overseas listing and overseas incorporation. This movement has led to three main sets of corporate governance regimes that are applicable, respectively, to overseas issuers including H shares (listed in Hong Kong), red chips (incorporated out of Mainland China and listed in Hong Kong) and N shares (listed on the New York Stock Exchange). In various governance dimensions, these regimes differ from those subject to Chinese domestic issuers of A/B shares. Although the trend of implementing more internationalized corporate governance in China is clearly defined by Chinese authorities, the domestic issuers are obliged to comply with several governance regulations designed specifically to account for the current transitional Chinese economy. For investors, it is then interesting to reveal, to which extent, in which aspects, Chinese corporate governance has been or will be internationalized, in order to better understand the uniqueness of Chinese business and governance environments. Our study contributes to such questions. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Disclosure and Governance Springer Journals

Local versus global: Corporate governance practices in Chinese domestic and overseas companies

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References (4)

Publisher
Springer Journals
Copyright
Copyright © 2009 by Palgrave Macmillan
Subject
Business and Management; Business and Management, general; Accounting/Auditing; Corporate Finance; Corporate Governance
ISSN
1741-3591
eISSN
1746-6539
DOI
10.1057/jdg.2009.16
Publisher site
See Article on Publisher Site

Abstract

Globalization has provided Chinese companies with a great opportunity to access international capital markets through various channels such as overseas listing and overseas incorporation. This movement has led to three main sets of corporate governance regimes that are applicable, respectively, to overseas issuers including H shares (listed in Hong Kong), red chips (incorporated out of Mainland China and listed in Hong Kong) and N shares (listed on the New York Stock Exchange). In various governance dimensions, these regimes differ from those subject to Chinese domestic issuers of A/B shares. Although the trend of implementing more internationalized corporate governance in China is clearly defined by Chinese authorities, the domestic issuers are obliged to comply with several governance regulations designed specifically to account for the current transitional Chinese economy. For investors, it is then interesting to reveal, to which extent, in which aspects, Chinese corporate governance has been or will be internationalized, in order to better understand the uniqueness of Chinese business and governance environments. Our study contributes to such questions.

Journal

International Journal of Disclosure and Governance – Springer Journals

Published: Oct 27, 2009

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