Following the Corporate Governance Canon Pays Off for Chinese Companies

Over the years, a consensus on the best corporate governance practices has emerged. The OECD Guidelines of Corporate Governance epitomize a canon of such practices, including things like having non-executive shareholders on boards, having an audit committee, and following special rules when trading with other companies owned by your company’s bosses. Yet, every canon brings about its own counter-reformation. Over the years, there have been calls to treat emerging markets like Russia and China as special cases. State-owned capital, combined with Asian values, has obviously paid off – as evinced by China’s more than 5 percent growth. Is it true, … Read more