We examine whether the corporate control market is an important governance mechanism that the controlling shareholders of publicly listed Chinese SOEs employ to improve the performance of less efficiently run Chinese SOEs. Using an econometric methodology advocated by Maddala (1983), we show...

For banks, good governances, directly linked to effectiveness of banking function, can reduce both the abilities and incentives of insiders to expropriate bank resources and promote bank efficiency, and are supposed to have real economic effect on their customers and firms in that country. This...