What Explains Corporate Governance Regimes in China? (24 November 2017)

Asian Institute of International Financial Law
Faculty of Law, The University of Hong Kong

Law and Economic Workshop Series

What Explains Corporate Governance Regimes in China?
The Same Old American Law and Economics Theories

Dr. Yu-Hsin Lin
Assistant Professor
School of Law, City University of Hong Kong

Discussant: Dr. Alan Kwan
Assistant Professor of Finance, The University of Hong Kong

Friday, 24 November 2017
1:30 – 2:30 pm
Academic Conference Room, 11/F Cheng Yu Tung Tower
The University of Hong Kong

The corporate literature has examined what factors affect corporate governance regimes and the effect of the choice of such regimes in the U.S. and other developed economies. Very few empirical works have been done to test whether publicly listed companies in China, the fast rising economy, behave as the corporate law and economics theories predict. In this article, using a unique, hand-coded data set on corporate charter provisions in randomly sampled 297 public Chinese firms, we develop an additive index that demonstrates whether they are more pro-controllers or pro-minority shareholders as compared to Delaware law and NYSE listing rules. We find that public Chinese firms were also disciplined by the market.

Dr. Yu-Hsin Lin is an Assistant Professor at the City University of Hong Kong, School of Law. Her research interests focus on corporate governance, company law, and capital markets regulation. Dr. Lin holds a J.S.D. degree from Stanford Law School, where she was appointed as the John M. Olin Fellow in Law and Economics. She has also been a visiting scholar at Harvard Law School. Dr. Lin’s publications appear in leading academic journals, including International Review of Law & Economics, Columbia Business Law Review, and New York University Journal of Law & Business.

The Law & Economic Workshop is a forum devoted to discussing the latest research in law and economics featuring both external and internal speakers. The workshop aims to promote interdisciplinary research, and to foster collaboration between law professors and scholars from other disciplines. Anyone with a keen interest in law and economics is welcome, yet potential attendees should bear in mind that we prefer to commence substantive conversation as quickly as possible without an extended presentation by the guest. Taking a look at the paper in advance is, therefore, advisable.