Conclusions

Abstract

Corporate governance plays an important role in a country’s economic development; since a weak corporate governance system may not only restrict economic growth, it could cause corruption, cronyism, volatile currency fluctuations and even financial crises. Challenging as strengthening corporate governance is in market economies, and corporate governance issues in transition economies are more complex than in developed market economies. How to establish a sound corporate governance system in a transition economy is therefore a concern of policy-makers, corporate decision-makers and the public in these economies. This book’s focus on China, the world’s largest transition economy, as a laboratory to study corporate governance issues, as it is undergoing an economic transition through partial privatization of ownership, should therefore be of particular interest. China has pursued market orientation within its peculiar socialist structure.