Title: The Institutions of Property Rights and the Capital Markets in China:A Perspective from Law and Economics
Abstract: As a leading role in China's economic reform, the State-Owned Enterprises (SOEs) have experienced great transition of being transformed into joint stock companies with modern corporate governance structure. In this process, however, some top managers strip the assets of the companies, tunnel firm s value out, and even usurp the ownership of these SOEs. In current China, the ownership of shares are centralized in both state-owned listed companies where state-holding shares dominate and private listed companies where private families keep control, with a consequence of a less liquid capital market, dispersed public shareholdings, and neglected interests of minority shareholders. Therefore, the reform of the property rights system should not just seek the efficiency by transferring state owned property to the entrepreneur elites without considering the social equity, but should take the tolerance and judgment standards of the society in consideration and try to harmonize efficiency and equity and coordinate economic growth with social stability.
Publication Year: 2010
Publication Date: 2010-01-01
Language: en
Type: article
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