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Corporate governance in transition economies: a case study of two Chinese airlines

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  • Mar, Pamela
  • Young, Michael N.
Abstract
China's eminent entry into the World Trade Organization increases the urgency of the need for corporate governance reform in its ailing state-owned enterprises. Thus, this study examined the extent to which listing of shares of Chinese state-owned enterprises on public stock exchanges--a key part of the on-going reforms--is associated with convergence of their corporate governance practices toward those accepted as global standards. Two prominent Chinese airlines were chosen as subjects of case studies involving both primary and secondary data sources. The findings are presented along with a discussion of the implications.

Suggested Citation

  • Mar, Pamela & Young, Michael N., 2001. "Corporate governance in transition economies: a case study of two Chinese airlines," Journal of World Business, Elsevier, vol. 36(3), pages 280-302, October.
    • Handle: RePEc:eee:worbus:v:36:y:2001:i:3:p:280-302
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    2. Young, Michael N. & McGuinness, Paul B., 2001. "The missing link: why stock markets have been ineffective in Chinese SOE reform," Business Horizons, Elsevier, vol. 44(4), pages 55-62.
    3. Jordan Shan & Jianhong Qi, 2007. "Independent Directorship and Corporate Performance: Some Further Testing from the China Case," Modern Applied Science, Canadian Center of Science and Education, vol. 1(4), pages 1-22, November.
    4. Giapponi, Catherine C. & Scheraga, Carl A., 2007. "Industry Issue Paper: Cross-Cultural Factors and Corporate Governance Transparency in Global Airline Strategic Alliances," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 46(2).
    5. Chow, Clement Kong Wing & Tsui, Wai Hong Kan, 2017. "Organizational learning, operating costs and airline consolidation policy in the Chinese airline industry," Journal of Air Transport Management, Elsevier, vol. 63(C), pages 108-118.
    6. Kong, Dongmin & Wang, Yanan & Zhang, Jian, 2020. "Efficiency wages as gift exchange: Evidence from corporate innovation in China," Journal of Corporate Finance, Elsevier, vol. 65(C).
    7. Ning, Lutao & Kuo, Jing-Ming & Strange, Roger & Wang, Boya, 2014. "International investors’ reactions to cross-border acquisitions by emerging market multinationals," International Business Review, Elsevier, vol. 23(4), pages 811-823.
    8. Hu, Kai-Chieh & Hsiao, Man-Wei, 2016. "Quality risk assessment model for airline services concerning Taiwanese airlines," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 177-185.
    9. Huang, Wen-Hsien & Kuai, Liang, 2006. "The in-flight shopper," Journal of Air Transport Management, Elsevier, vol. 12(4), pages 207-211.
    10. Lau, Chung-Ming & Fan, Dennis K.K. & Young, Michael N. & Wu, Shukun, 2007. "Corporate governance effectiveness during institutional transition," International Business Review, Elsevier, vol. 16(4), pages 425-448, August.
    11. Oehmichen, Jana, 2018. "East meets west—Corporate governance in Asian emerging markets: A literature review and research agenda," International Business Review, Elsevier, vol. 27(2), pages 465-480.
    12. Hu, Fang & Tan, Weiqiang & Xin, Qingquan & Yang, Sixian, 2013. "How do market forces affect executive compensation in Chinese state-owned enterprises?," China Economic Review, Elsevier, vol. 25(C), pages 78-87.
    13. Jinyang Hua & Paul Miesing & Mingfang Li, 2006. "An Empirical Taxonomy of SOE Governance in Transitional China," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 10(4), pages 401-433, November.
    14. Thanh Ngo & Kan Wai Hong Tsui, 2022. "Estimating the confidence intervals for DEA efficiency scores of Asia-Pacific airlines," Operational Research, Springer, vol. 22(4), pages 3411-3434, September.
    15. Giapponi, Catherine & Scheraga, Carl, 2007. "The Impact of Cross-Cultural Factors on Corporate Governance Transparency: The Implication for Strategic Alliances in the Airline Industry," 48th Annual Transportation Research Forum, Boston, Massachusetts, March 15-17, 2007 207915, Transportation Research Forum.
    16. Eskil Goldeng & Leo A. Grünfeld & Gabriel R. G. Benito, 2008. "The Performance Differential between Private and State Owned Enterprises: The Roles of Ownership, Management and Market Structure," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1244-1273, November.
    17. Hao Shi, 2006. "L'évolution du "calcul économique en équipe" : un processus de légitimation des changements institutionnels en Chine," Working Papers 2006-4, Laboratoire Orléanais de Gestion - université d'Orléans.
    18. Jianfeng Wu & Dean Xu & Phillip Phan, 2011. "The effects of ownership concentration and corporate debt on corporate divestitures in Chinese listed firms," Asia Pacific Journal of Management, Springer, vol. 28(1), pages 95-114, March.

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