Corporate Governance Enforcement and Financial Development : The Chinese Experience, Hardcover by Chen, Ding, ISBN 1781004803, ISBN-13 9781781004807, Like New Used, Free shipping in the US

If the reasons for the rapid growth of the Chinese stock market over the past two decades cannot be found in the traditional law and finance approach connecting capital market development to the legal protection of investors, as the protection for shareholders in China's market is very weak, then what is the explanation? Chen (U. of Newcastle, England) seeks the answer through an examination of governance through the lens of the New Institutional Economics, focusing in particular on the effectiveness of the enforcement of financial contracts between external financiers and corporate controllers. Finding that formal enforcement is weak and inefficient in China, he suggests an alternative explanation of capital market growth as a combined result of state guarantee, financial repression, institutional rent seeking, and speculation by investors, all of which suggests to him that the expansion of the Chinese stock market is highly inefficient and unsustainable. Annotation ©2013 Book News, Inc., Portland, OR ()