Economic Development of China Dissertation Example | Topics and Well Written Essays - 11750 words

Economic Development of China - Dissertation ExampleNellis (1999) contends that the effectiveness of privatization in transitional economies depends on the existence of the institutional underpinnings of capitalism. In addition, empirical studies confirm the close relationship between good institutions and economical development (De Long and Shleifer, 1993), Besley, 1995 Knack and Keefer, 1995 Easterly and Levine, 1997, 2003 Acemoglu, Johnson, and Robinson, 2001).On the other hand, Stiglitz (1999) suggests that using better shell outment contracts to spend a penny reconcile-sh ar holders act like private owners is a better choice in the absence of those institutional underpinnings, a path which has been followed by the Chinese government in the past two decades. As noted in World Bank (1997) report, or so other countries in transition consider turned to systemic, widespread privatization of state owned enterprises (SOEs). In China, the state or its agents, carry out shareholder functions performed by private owners in trade economic systems. Retaining a large portion of state-owned shares in listed companies1, the Chinese government delegates different types of state-share holders to control these state-owned shares. This dissertation attempts to examine the governance role of different types of state-share holders in Chinas listed companies.Chinas transition from a central-planned economy to a market-oriented wholeness is special and unique. Chinese government creates its own path of transition earlier than just using a blueprint or recipe from western advisors. Chinese government has been always attempting to privatize its state-owned assets gradually rather than a big bang like that undertaken by Russia... The interpretation of the results of this study is subject to four limitations. First, the miscellany of state-share holders based on their names is not good enough to distinguish GA shareholders and corporate state-share holders perfectly. For e xample, most state assets operating companies rehearse the name of utter Assets Operating Company, such as Jiangsu State Assets Operating Company. But some operating companies, which should be classified as GA shareholders, could use other names and then are classified as corporate state-share holders in this study.Second, corporate state-share holders could have more incentives and means to manage earnings to improve performance through related-party transactions than GA shareholders because they are holding companies (Jian (2003)). In this study, the potential earnings management through non-operating activities found in Chen and yuan (2002), such as sales of fixed assets, has been controlled but the earnings management through related-party transactions cannot be controlled. This study also suggests several avenues for future research. While the benefit of corporate state-share holders has been documented in this study, the court of them (such as insider control problems) can not be ignored and remains an open question. More theoretical work is indispensable to understand the benefit and cost of different types of state-share holders. Another potential area of research is to investigate their incentives to manage earnings for different types of state-share holders.