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8 - Legally Politicized Corporate Governance

from Part III - Law and Political Economy in Corporate China

Published online by Cambridge University Press:  10 August 2023

Tamar Groswald Ozery
Affiliation:
Hebrew University of Jerusalem
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Summary

To fully understand the role of law in China’s capital market, one must first consider how modern firms and the capital market came to form and how their early emergence fit within the Party-state’s overall economic development plans.

The chapter presents the emergence of the capital market in China. It focuses on two key elements: (1) the rise of the large (public) firm and (2) the creation of the capital market as a platform for the offering and exchange of securities. Through these elements, the chapter looks at how the legal framework that governed firms in the early stages of market development was shaped by, and helped secure, the political–economy dynamics at that time.

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Chapter
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Law and Political Economy in China
The Role of Law in Corporate Governance and Market Growth
, pp. 205 - 226
Publisher: Cambridge University Press
Print publication year: 2023

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