Principal Constraints and Challenges of Introducing Effective System of Corporate Governance in Emerging China

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Sidaq
Sidaq
1 DAV college , Sec 10, Chandigarh, India

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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.

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No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Sidaq. 2014. \u201cPrincipal Constraints and Challenges of Introducing Effective System of Corporate Governance in Emerging China\u201d. Global Journal of Management and Business Research - A: Administration & Management GJMBR-A Volume 14 (GJMBR Volume 14 Issue A6): .

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GJMBR Volume 14 Issue A6
Pg. 47- 52
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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September 13, 2014

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English

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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.

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Principal Constraints and Challenges of Introducing Effective System of Corporate Governance in Emerging China

Sidaq
Sidaq DAV college , Sec 10, Chandigarh, India

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