ABSTRACT
Corporate shareholding and corporate governance are new concepts in the People’s Republic of China (hereafter PRC or China). The “corporatization” or “privatization” of state-owned enterprises in China has led to new agency problems generating conflicts of interest among different stakeholder groups. Recently, a number of efforts have been undertaken to improve China’s business culture in the area of corporate governance. While large scale scandals in the Chinese business arena have recently been overshadowed by the bankruptcies of Enron and WorldCom in the United States, corporate governance (CG) remains a key area of economic reform in China.
