The Dynamics of Evolution of the Corporate Governance of Chinese State-Controlled Listed Companies - Business Law Review View The Dynamics of Evolution of the Corporate Governance of Chinese State-Controlled Listed Companies by - Business Law Review The Dynamics of Evolution of the Corporate Governance of Chinese State-Controlled Listed Companies 41 1

The wave of reforming corporate governance has been increasingly, strong worldwide since the devastating 2008 financial, crisis. The existing theories by corporate lawyers have offered, two distinct paths for the reform. The convergence theory argues, that with the force of competition, commercial jurisdictions in the, globe will automatically converge towards a single optimal model, of corporate governance sooner or later that is featured with the, shareholder-oriented principle. On the contrary, the divergence, theory insists that the effect of path dependence, especially the, idiosyncratic political traditions or influences, is the key dynamic, force to push the evolution of corporate governance in a certain, commercial jurisdiction. With the proofs of Chinese state-controlled, listed companies (SCLCs), it is demonstrated that the, divergence theory is more convincing and pragmatic. One of the, most important implications of this understanding is that the, improvement of the corporate governance of the SCLCs relies on, the Chinese political reform to a large degree.

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