ABSTRACT
In the reform era, the Bank of China has successfully introduced a modernised corporate governance framework on a selective basis, and been listed on both the domestic and international stock markets without removing the embedded party committee and political control. In politically organised societies, whereas political totalitarianism favours class struggle, charismatic leadership and mobilisation, economic totalitarianism prefers the use of experts, organisational hierarchy and regulatory means. Both restructuring organisation and adopting advanced information technology could contribute to sound corporate governance and strong performance. The Internet Revolution in South Korea had an impact on corporate governance reform. Improved corporate governance, increased transparency and media coverage and globalisation could also expose state banks to international market discipline and thus create more reputational risk. Effective corporate governance can lead to the efficient use of resources to create wealth, depending on the efficacy of legal and institutional arrangements.
