Venture Capital and the Corporate Governance of Chinese Listed Companies

Business & Finance, Finance & Investing, Corporate Finance, Finance
Cover of the book Venture Capital and the Corporate Governance of Chinese Listed Companies by Lin Zhang, Springer New York
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Lin Zhang ISBN: 9781461412816
Publisher: Springer New York Publication: October 20, 2011
Imprint: Springer Language: English
Author: Lin Zhang
ISBN: 9781461412816
Publisher: Springer New York
Publication: October 20, 2011
Imprint: Springer
Language: English

State-controlled listed companies have always dominated Chinese stock markets. As a result of the rampant scandals related to them, there have been voluminous academic efforts to explore their corporate governance, underpinned by agency costs. However, these studies have yet to examine the phenomenon from the perspective of venture capital and adaptive efficiency.

During the last ten years, despite China’s remarkable progress in the development of its venture capital market, its domestic venture capital has been marginalized by American competitors. Given the different performance between them, the author contends that the corporate governance system of Chinese state-controlled listed companies has hampered the performance of the institutional factors which are responsible for the prosperity of American venture capital in Chinese venture capital markets.

With the practice of American venture capital as the mirror, he empirically demonstrates that Chinese domestic venture capital lacks the four factors related to the success of their American counterparts: large and independent funding, application of incentive mechanisms, efficient exit channels, and a high risk tolerance level. More importantly, these defects as a whole are closely linked to the corporate governance of state-controlled listed companies.  Considering the potential negative consequences on economic and social development, the author identifies policy reforms underway to harmonize agency costs and adaptive efficiency. 

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

State-controlled listed companies have always dominated Chinese stock markets. As a result of the rampant scandals related to them, there have been voluminous academic efforts to explore their corporate governance, underpinned by agency costs. However, these studies have yet to examine the phenomenon from the perspective of venture capital and adaptive efficiency.

During the last ten years, despite China’s remarkable progress in the development of its venture capital market, its domestic venture capital has been marginalized by American competitors. Given the different performance between them, the author contends that the corporate governance system of Chinese state-controlled listed companies has hampered the performance of the institutional factors which are responsible for the prosperity of American venture capital in Chinese venture capital markets.

With the practice of American venture capital as the mirror, he empirically demonstrates that Chinese domestic venture capital lacks the four factors related to the success of their American counterparts: large and independent funding, application of incentive mechanisms, efficient exit channels, and a high risk tolerance level. More importantly, these defects as a whole are closely linked to the corporate governance of state-controlled listed companies.  Considering the potential negative consequences on economic and social development, the author identifies policy reforms underway to harmonize agency costs and adaptive efficiency. 

More books from Springer New York

Cover of the book Operator Inequalities of the Jensen, Čebyšev and Grüss Type by Lin Zhang
Cover of the book Imaging the Brain with Optical Methods by Lin Zhang
Cover of the book A General Framework for Reasoning On Inconsistency by Lin Zhang
Cover of the book Transient and Permanent Error Control for Networks-on-Chip by Lin Zhang
Cover of the book Slayers, Saviors, Servants and Sex by Lin Zhang
Cover of the book Photoemission from Optoelectronic Materials and their Nanostructures by Lin Zhang
Cover of the book The Role of Criticism in Understanding Problem Solving by Lin Zhang
Cover of the book Endovascular Interventional Neuroradiology by Lin Zhang
Cover of the book PET-CT by Lin Zhang
Cover of the book Discrete Mathematics by Lin Zhang
Cover of the book Transparent Communication of Health Risks by Lin Zhang
Cover of the book In Situ Remediation of Chlorinated Solvent Plumes by Lin Zhang
Cover of the book Physiological Mechanisms and Adaptation Strategies in Plants Under Changing Environment by Lin Zhang
Cover of the book Celestial Shadows by Lin Zhang
Cover of the book Fundamentals of Nuclear Pharmacy by Lin Zhang
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy