The answer lies in whether you can gain high enough profit according to the riskiness level of this investment. The urge to push forward economic reforms As China prepared to join the WTO, it increasingly became recognized to the importance of market economy.
How to save SOEs from inefficient, bulky and in need of money?
However, what investor should worry was that the favorable policies or even the whole political atmosphere might change someday, which would become a large political risk.
No one wants to miss the chance to invest in a such economy. And you need to be critical. The government was the largest shareholder of all SOEs and controlled the mutual funds and the Securities Regulatory Commission. This country has the largest population of 1. It had more accessible natural resources, lower tax rate or other preferential treatments, stronger financial support from banks, and more ensured market for its products.
All of these made external stakeholder unable to efficiently act as a check against the SOEs. Internal governance flaws China has a long history of government or party control over companies ever since As it is state-owned, PetroChina suffered problems like low productivity, dual objectives interest confrontation between the government and minority shareholdersinformation asymmetry unwillingness to disclose negative news to shareholderstunneling operations or corruption, and also principal agent problems.
More Essay Examples on Management Rubric The capital market in China was rather weak and imperfect around the time of In my opinion, China need to carry on thorough economic and even political reforms, including reduce government intervention of corporate management, solving corruption problem in government and SOEs, improve corporate governance culture in corporations, and construct a well organize capital market.
So far, it looks like a draw between the Cons and Pros for investing in PetroChina, right? The world is so diversified and varied and there is no universal standard for corporate governance model. Share held by state or corporate persons in former SOEs was forbidden to be traded until Thirdly, while PetroChina had 3 independent non-executive directors out of its 13 members of the board, 2 of them had close ties to the Chinese government, again weakening the credibility of their original responsibility to act as a check of the business operation.
Banks in China lacked discretion and independent judgment to oversee the operation of their borrowers. As purely international investors with less concern on political right and wrong or environment issues, driven by profit and price of stocks sitting in the portfolio, should you invest in PetroChina at the time of ?PetroChina: International Corporate Governance with Chinese Characteristics Case Solution, PetroChina, the largest oil and gas company in China, was a showcase of good corporate governance in China's state-owned enterprises (SOEs).
The initial pu. Baosteel Group: Governance with Chinese Characteristics Case Solution, The new outsider-dominated board of directors of China's state-owned Baosteel Group must decide whether to change the corporate structure. With the complet.
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PetroChina: international corporate governance with Chinese characteristics. Responsibility PetroChina Company. Corporate governance > China > Case studies. Petroleum industry and trade > China > Case studies.
China Case Analysis The article “PetroChina: International Corporate Governance with Chinese Characteristics” describes the major concerns about PetroChina’s corporate governance when and after it was listed on NYSE and HKSE, which was the first Chinese state-owned enterprise launched IPO overseas - Petrochina Case.
This paper examines the reception of Western corporate governance models and standards into the Chinese system of corporate governance.
It investigates how Chin Corporate Governance with Chinese Characteristics: The Case of State Owned Enterprises Sappideen, Razeen, Corporate Governance with Chinese Characteristics: The Case .Download