Edited by Martin Conyon, Trustee Professor, Department of Economics, Bentley University and Lerong He, Dean and Professor, School of Business, State University of New York at Geneseo, USA

‘This book covers all the important and unique aspects of corporate governance in China. It is a must read for scholars and professionals who are interested in learning about Chinese businesses.’

• Contributors vii1 Introduction to Chinese Corporate Governance 1Martin Conyon and Lerong HePART I POLITICAL ECONOMY AND INSTITUTIONAL CONTEXT 162 Governance in today's China: China's political regime and economicsystem 17Doug Guthrie, Dashiell Chien, Chris Gao and Diane Long3 How the Chinese Communist Party affects corporate governance in China 43Shaomin Li and Matthew Farrell4 The Chinese labor market and corporate governance 67Tony Fang and John Hartley5 Decentralization, local protectionism, and home court bias 85Michael Firth, Oliver Meng Rui and Wenfeng WuPART II INTERNAL CORPORATE GOVERNANCE MECHANISMS 1366 Corporate governance in China: new perspectives and future research 137Xiaofei Pan and Meijun Qian7 Meta-analysis on board independence and CEO duality 156Mike W. Peng, Canan Mutlu and Marc van Essen8 The role of the board of directors in corporate governance 174Ting Luo and Heng Yue9 Executive compensation and executive turnover in China: what have welearned and what have we not? 190Cheryl Xiaoning Long10 Stock-based compensation in Chinese listed firms 204Junqi Dong, Yuexin Liao and Qingquan XinPART III EXTERNAL CORPORATE GOVERNANCE MECHANISMS 22511 Financial analysts in China 226Huifang Yin and Huai Zhang12 The economics of auditing in China 243Yupeng Lin, Rui Shi, Yannis Yuan and Luo Zuo13 When external governance actors meet industry mimetic isomorphism:evidence from opportunistic diversification into real estate 264Wei Shi, Wenjing Cai, Dave Ketchen and Fuxiu Jiang14 Contingent contracts between entrepreneurial companies and venturecapital investors: the case of new third board firms in China 283Yi Jiang and Bin Ke15 Corruption, anti-corruption, and corporate governance in China 302Xi Fu and Zhifang ZhangPART IV OWNERSHIP AND STRUCTURAL INFLUENCES 31916 Platform governance in China 320Runtian Jing and Zhikai Wang17 How to empower minority shareholders? Chinese practice and literaturereview 337Huihua He, Jing Chen and Junxiong Fang18 Corporate governance in Chinese family business 358Qiuyue Lyu, Hanqing Chevy Fang and Junsheng Dou19 Corporate governance of Chinese multinational enterprises 379Jean Jinghan Chen20 Coalition of logics and consequential decision-making in partiallyprivatized SOEs 395Cyndi Man ZhangPART V CONTEMPORARY ISSUES IN CORPORATE GOVERNANCE 41921 Corporate governance and innovation: a survey of Chinese evidence 420Zhaojun Huang and Xuan Tian22 Unleashing corporate entrepreneurship in privatization 437Li Sun, Livia Markoczy, Weiwen Li and Weilei Stone Shi23 Corporate environmental sustainability and transitions: China's evolutionand practice 469Joseph Sarkis24 Leviathan's grip: state dominance in Chinese corporate governance 488Martin Conyon and Lerong He

Edited by Martin Conyon, Trustee Professor, Department of Economics, Bentley University and Lerong He, Dean and Professor, School of Business, State University of New York at Geneseo, USA

‘This book covers all the important and unique aspects of corporate governance in China. It is a must read for scholars and professionals who are interested in learning about Chinese businesses.’

• Contributors vii1 Introduction to Chinese Corporate Governance 1Martin Conyon and Lerong HePART I POLITICAL ECONOMY AND INSTITUTIONAL CONTEXT 162 Governance in today's China: China's political regime and economicsystem 17Doug Guthrie, Dashiell Chien, Chris Gao and Diane Long3 How the Chinese Communist Party affects corporate governance in China 43Shaomin Li and Matthew Farrell4 The Chinese labor market and corporate governance 67Tony Fang and John Hartley5 Decentralization, local protectionism, and home court bias 85Michael Firth, Oliver Meng Rui and Wenfeng WuPART II INTERNAL CORPORATE GOVERNANCE MECHANISMS 1366 Corporate governance in China: new perspectives and future research 137Xiaofei Pan and Meijun Qian7 Meta-analysis on board independence and CEO duality 156Mike W. Peng, Canan Mutlu and Marc van Essen8 The role of the board of directors in corporate governance 174Ting Luo and Heng Yue9 Executive compensation and executive turnover in China: what have welearned and what have we not? 190Cheryl Xiaoning Long10 Stock-based compensation in Chinese listed firms 204Junqi Dong, Yuexin Liao and Qingquan XinPART III EXTERNAL CORPORATE GOVERNANCE MECHANISMS 22511 Financial analysts in China 226Huifang Yin and Huai Zhang12 The economics of auditing in China 243Yupeng Lin, Rui Shi, Yannis Yuan and Luo Zuo13 When external governance actors meet industry mimetic isomorphism:evidence from opportunistic diversification into real estate 264Wei Shi, Wenjing Cai, Dave Ketchen and Fuxiu Jiang14 Contingent contracts between entrepreneurial companies and venturecapital investors: the case of new third board firms in China 283Yi Jiang and Bin Ke15 Corruption, anti-corruption, and corporate governance in China 302Xi Fu and Zhifang ZhangPART IV OWNERSHIP AND STRUCTURAL INFLUENCES 31916 Platform governance in China 320Runtian Jing and Zhikai Wang17 How to empower minority shareholders? Chinese practice and literaturereview 337Huihua He, Jing Chen and Junxiong Fang18 Corporate governance in Chinese family business 358Qiuyue Lyu, Hanqing Chevy Fang and Junsheng Dou19 Corporate governance of Chinese multinational enterprises 379Jean Jinghan Chen20 Coalition of logics and consequential decision-making in partiallyprivatized SOEs 395Cyndi Man ZhangPART V CONTEMPORARY ISSUES IN CORPORATE GOVERNANCE 41921 Corporate governance and innovation: a survey of Chinese evidence 420Zhaojun Huang and Xuan Tian22 Unleashing corporate entrepreneurship in privatization 437Li Sun, Livia Markoczy, Weiwen Li and Weilei Stone Shi23 Corporate environmental sustainability and transitions: China's evolutionand practice 469Joseph Sarkis24 Leviathan's grip: state dominance in Chinese corporate governance 488Martin Conyon and Lerong He

Edited by Martin Conyon, Trustee Professor, Department of Economics, Bentley University and Lerong He, Dean and Professor, School of Business, State University of New York at Geneseo, USA

‘This book covers all the important and unique aspects of corporate governance in China. It is a must read for scholars and professionals who are interested in learning about Chinese businesses.’

• Contributors vii1 Introduction to Chinese Corporate Governance 1Martin Conyon and Lerong HePART I POLITICAL ECONOMY AND INSTITUTIONAL CONTEXT 162 Governance in today's China: China's political regime and economicsystem 17Doug Guthrie, Dashiell Chien, Chris Gao and Diane Long3 How the Chinese Communist Party affects corporate governance in China 43Shaomin Li and Matthew Farrell4 The Chinese labor market and corporate governance 67Tony Fang and John Hartley5 Decentralization, local protectionism, and home court bias 85Michael Firth, Oliver Meng Rui and Wenfeng WuPART II INTERNAL CORPORATE GOVERNANCE MECHANISMS 1366 Corporate governance in China: new perspectives and future research 137Xiaofei Pan and Meijun Qian7 Meta-analysis on board independence and CEO duality 156Mike W. Peng, Canan Mutlu and Marc van Essen8 The role of the board of directors in corporate governance 174Ting Luo and Heng Yue9 Executive compensation and executive turnover in China: what have welearned and what have we not? 190Cheryl Xiaoning Long10 Stock-based compensation in Chinese listed firms 204Junqi Dong, Yuexin Liao and Qingquan XinPART III EXTERNAL CORPORATE GOVERNANCE MECHANISMS 22511 Financial analysts in China 226Huifang Yin and Huai Zhang12 The economics of auditing in China 243Yupeng Lin, Rui Shi, Yannis Yuan and Luo Zuo13 When external governance actors meet industry mimetic isomorphism:evidence from opportunistic diversification into real estate 264Wei Shi, Wenjing Cai, Dave Ketchen and Fuxiu Jiang14 Contingent contracts between entrepreneurial companies and venturecapital investors: the case of new third board firms in China 283Yi Jiang and Bin Ke15 Corruption, anti-corruption, and corporate governance in China 302Xi Fu and Zhifang ZhangPART IV OWNERSHIP AND STRUCTURAL INFLUENCES 31916 Platform governance in China 320Runtian Jing and Zhikai Wang17 How to empower minority shareholders? Chinese practice and literaturereview 337Huihua He, Jing Chen and Junxiong Fang18 Corporate governance in Chinese family business 358Qiuyue Lyu, Hanqing Chevy Fang and Junsheng Dou19 Corporate governance of Chinese multinational enterprises 379Jean Jinghan Chen20 Coalition of logics and consequential decision-making in partiallyprivatized SOEs 395Cyndi Man ZhangPART V CONTEMPORARY ISSUES IN CORPORATE GOVERNANCE 41921 Corporate governance and innovation: a survey of Chinese evidence 420Zhaojun Huang and Xuan Tian22 Unleashing corporate entrepreneurship in privatization 437Li Sun, Livia Markoczy, Weiwen Li and Weilei Stone Shi23 Corporate environmental sustainability and transitions: China's evolutionand practice 469Joseph Sarkis24 Leviathan's grip: state dominance in Chinese corporate governance 488Martin Conyon and Lerong He