Transition from administrative to economic model of corporate governance

Abstract

PurposeThis paper makes the first attempt to provide a new analytical framework for research on the evolution of China's corporate governance models. The purpose of this paper is to investigate developmental corporate governance mechanisms in China the over past decades from a synthetic and dynamic analytical viewpoint.Design/methodology/approachThis is a conceptual paper.FindingsThe evolution of corporate governance from an administrative to an economic model in China was not a smooth process and was confronted with various unavoidable institutional and ideological obstacles. Consequently, the transition of governance models has demonstrated the following four salient characteristics: gradualism, dualism, systematization and path dependency.Originality/valueThis paper makes the first attempt to provide a new analytical framework for research on the evolution of China's corporate governance models.