Heidrick & Struggles (H&S) have produced a new study on Corporate Governance in China in association with Fudan University in Shanghai. According to their press release, the study found that there is…room for growth in corporate governance in China - as I outlined in an post on Corporate (Non)Governance. So, no surprises there!
The report, based on 15 months work and over 100 questionnaires completed by senior executives, notes the following about corporate governance in China:
• Boards are characterized by the cultural emphasis on local networks (guanxi), particularly with the government
• Amongst the companies studied, 72% of board members were sourced through referrals
• 48% of Chinese state-owned enterprises and private enterprises would not consider employing foreign directors
• 26% will consider hiring foreign directors, amongst which, 69% expect to do so within three years
See full Article.
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