Summary Previous studies have primarily focused on the relative success of collectively owned enterprises (COEs) in China during the early years of reform, but they have ignored the agency problems inherent in this type of organizational form that may be an obstacle to further improving...

Traditionally, the Chinese government used an “iron fist” to control the economy and firms under central planning. However, the economic reforms since 1978 have substantially changed the institutional landscape. After more than two decades of dramatic economic transition, the economy is now...