Principal Constraints and Challenges of Introducing Effective System of Corporate Governance in Emerging China
In this article, I examine the evolution of corporate governance reforms in the emerging economy of China. I first describe the importance of corporate governance for development and driving forces behind governance reforms in china. After summarizing the evolution of governance reforms in china ,I identify major obstacles that impede their implementation in china namely (A)Highly Concentrated Ownership Structure (B) Lack of Incentives (C) Power of the dominant shareholder (D) Lack of Independence among Directors (E)Underdeveloped external monitoring systems (F) Corruption (G) Frequent Insider Trading (H)Falsification and Fabrication of Financial Data (I) Immature Capital Market (J) Shortage of qualified independent directors (K) Insider Control of Corporate Affairs (L) Weak Supervisory Board (M) Weak Auditing Profession
