The Strange Role of Independent Directors in a Two-Tier Board Structure in China’s Listed Companies

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)12_Chapter in an edited book (Author)peer-review

3 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Title of host publicationChanging Corporate Governance Practices in China and Japan
Subtitle of host publicationAdaptations of Anglo-American Practices
EditorsMasao Nakamura
PublisherPalgrave Macmillan
Chapter9
Pages185-205
ISBN (Electronic)978-0-230-59515-6
ISBN (Print)978-0-230-22165-9, 978-1-349-30723-4
Publication statusPublished - 2008
Externally publishedYes

Abstract

Introduction

Corporate laws around the world, when they were first enacted, were very similar,1 largely because of the inherent nature of commerce and capitalism that originated in Western Europe and later spread to North America. The transplantation of corporate law from the leading countries of origin (Holland, then England, France, Germany, the United States, and other civil and common law countries) to other countries led to tremendous similarities in the basic legal framework of corporations across the globe. However, as the corporate world grew, divergence began to emerge between the origin countries as they sought to provide legal and institutional solutions to problems occurring in national settings with sometimes very different legal and sociocultural traditions. As a result, in terms of corporate law, the origin countries differ “in how they responded to the challenges of the rapid growth of the enterprise and financial sectors and to the booms and busts of financial markets that accompanied it.”2 In spite of the differences, the corporate laws in the origin countries have been, in various degrees, successful. Time is to be credited for this: the development of capitalism and the credit culture in Western Europe and North America has lasted for over two centuries, a timespan wide enough for those countries to adjust and rationalize their regulatory and market institutions of corporations through a process of trial and error.

Citation Format(s)

The Strange Role of Independent Directors in a Two-Tier Board Structure in China’s Listed Companies. / Wang, Jiangyu.

Changing Corporate Governance Practices in China and Japan: Adaptations of Anglo-American Practices. ed. / Masao Nakamura. Palgrave Macmillan, 2008. p. 185-205.

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)12_Chapter in an edited book (Author)peer-review