Privatization and corporate governance state as shareholder- The case of China

Abstract

The State-owned enterprises (SOE) reform in China is intriguing and exploratory, providing a model to many other transitional economies. This thesis categorizes the underlying reasons for SOEs' low efficiency; discusses the need of privatization; illustrates the relationship between privatization and corporate governance and answers how privatization suits Chinaa??s case. By doing statistical analysis based on the data of Chinaa??s listed corporations from 1995 to 1998, this study analyzes how different degree of privatization affects various aspects of companies' corporate governance and how the corporate governance difference relates to the performance of the companies.