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Volumn 15, Issue 1, 2014, Pages 107-139

Corporate governance of Chinese state-controlled listed companies: A revisit through the lens of venture capital

Author keywords

corporate governance; listed companies; state ownership; venture capital

Indexed keywords


EID: 84899052588     PISSN: 15667529     EISSN: 17416205     Source Type: Journal    
DOI: 10.1017/S1566752914001050     Document Type: Article
Times cited : (9)

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    • This issue is analysed below
    • This issue is analysed below.
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    • In practice, the CSRC has administrative discretion to permit or suspend certain business activities which are carried out by Chinese listed companies but still constitute loopholes in relevant valid laws
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    • The first venture capital fund in the form of a limited partnership after the revision of the Partnership Enterprise Law was the South Sea Venture Capital. Detailed information on its operation is not available yet
    • The first venture capital fund in the form of a limited partnership after the revision of the Partnership Enterprise Law was the South Sea Venture Capital. Detailed information on its operation is not available yet.
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    • The interview was conducted in late 2008. The questions aimed at all government venture capital in China. Thus, the interviewee's answers basically described the operation of government venture capital as a whole
    • The interview was conducted in late 2008. The questions aimed at all government venture capital in China. Thus, the interviewee's answers basically described the operation of government venture capital as a whole. It is undeniable that the operational model of government venture capital cannot be used to mirror the operation of privately held venture capital in China. However, given the fact that government venture capital represents the majority of Chinese domestic venture capital, its performance in making use of incentive mechanisms reflects, to a large degree, the profile of Chinese domestic venture capital in this regard.
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    • In practice, venture capital first lays down in the company's articles of association its registered capital payable to the portfolio company, which is equal to the amount of its first-stage financing
    • In practice, venture capital first lays down in the company's articles of association its registered capital payable to the portfolio company, which is equal to the amount of its first-stage financing. By offering the first round of financing, the portfolio company can usually satisfy the minimum requirement for the registered capital stipulated by Chinese company law and is also financially able to achieve its first business goal. Once the first goal is accomplished, venture capital increases its registered capital in the company to help it achieve the second business goal by revising the articles of association and changing the record of its registered capital at the responsible Administration Bureau of Industry and Commerce.
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    • An accurate judgment of managerial performance is based on knowledge, experience and information. In this regard, the market well outperforms government. The western model of stock options fully recognises the theorem by leaving the power to monitor and punish managers to market players, which ensures that punishment is accurate and fair
    • An accurate judgment of managerial performance is based on knowledge, experience and information. In this regard, the market well outperforms government. The western model of stock options fully recognises the theorem by leaving the power to monitor and punish managers to market players, which ensures that punishment is accurate and fair. In contrast, the Wuhan model relied on government officials who were usually unable to make accurate business judgments and to properly evaluate the performance of managers of selected SOEs. Consequently, inaccurate and unfair evaluation and punishment resulting from the model led to its demise. Criminal law follows the same rationale. When a criminal law as well as its penalties are enacted by a citizenoriented legislature and enforced by a well-devised and transparent court system, its legitimacy will be recognised by society as a whole. Otherwise, sooner or later, it will be abolished as a result of citizens" opposition.
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    • its Article 12. Pursuant to the regulation entitled, jointly enacted by the SASAC and the Ministry of Finance of the PRC in, the SASAC is responsible for approving the use of stock options by SCLCs owned by the SASAC, and the local state-owned assets supervision and administration commission is responsible for approving the issue of stock options by local SCLCs
    • See its Article 12. Pursuant to the regulation entitled "Provisional Measure on the Use of Stock Options by the SCLCs" jointly enacted by the SASAC and the Ministry of Finance of the PRC in 2006, the SASAC is responsible for approving the use of stock options by SCLCs owned by the SASAC, and the local state-owned assets supervision and administration commission is responsible for approving the issue of stock options by local SCLCs. For privately held listed companies in China, the CSRC takes this responsibility pursuant to the regulation entitled "Provisional Administration Measures on the Use of Stock Options by Listed Companies" enacted in 2006. Before the enactment of the two regulations, approval of the use of stock options by Chinese listed companies followed the same model.
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    • Economically benevolent dictators: Lessons for developing democracies
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    • (2011) American Journal of Comparative Law , vol.59 , pp. 270
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* 이 정보는 Elsevier사의 SCOPUS DB에서 KISTI가 분석하여 추출한 것입니다.