Download or read book The Independent Director in China and India written by Cornelius Bader and published by GRIN Verlag. This book was released on 2011-07 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2010 in the subject Law - Comparative Legal Systems, Comparative Law, grade: A+, Vanderbilt University (Law School), language: English, abstract: The "independent director" has become a centerpiece of modern corporate governance. However, the concept of "independence", and the ability of independent directors to fulfill their roles, remains deeply problematical. In the course of the discussion on the proper role of independent directors that unfolded in Europe and the United States during the 1980s and 1990s and peaked in the wake of the Enron scandal, rules on director independence have found their way to the corporate governance regimes of developing countries that turned their head to western economies. Particularly in China and India, independent directors have taken their place on company boards, earning mixed responses from the academic and business community. What is the current state of Indian and Chinese rules on director independence? What tensions do they address and create? And what can be done to optimize the achievement of their objectives? The goal of this article is to examine the status quo of director independence in the two countries, to put the regulations into their historic and political context, to summarize practical experiences with the new institution, and to point to possible future developments.

Download or read book Developing China s Capital Market written by D. Cumming and published by Springer. This book was released on 2015-12-17 with total page 259 pages. Available in PDF, EPUB and Kindle. Book excerpt: China is an increasingly influential emerging economy that is currently attracting the attention of academics, practitioners, and policy makers. This book is a collection of cutting edge research findings on issues relating to the experiences and challenges of China's capital market development.

Download or read book The Independent Director in Chinese Corporate Governance written by Donald C. Clarke and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance (gongsi zhili) is a concept whose time has come in China, and the institution of the independent director is a major part of this concept. Policymakers in several countries such as the United Kingdom and Japan have turned to independent directors as an important element of legal and policy reform in the field of corporate governance. In August 2001, the China Securities Regulatory Commission (CSRC) issued its Guidance Opinion on the Establishment of an Independent Director System in Listed Companies. Covering all companies listed on Chinese stock exchanges (but not Chinese companies listed overseas), it constitutes the most comprehensive measure taken to date by the CSRC - or indeed by any Chinese governmental authority - to regulate internal corporate governance through the institution of the independent director. This article discusses the institution of independent directors, and the Independent Director Opinion specifically, as a potential solution to Chinese corporate governance problems. It begins by discussing special features of the Chinese corporate landscape and the most prominent problems in the area of corporate governance. It then proceeds to identify differing conceptions of what is broadly termed the independent director - the outside director, the disinterested director, and the (more narrowly defined) independent director - and discusses the approaches taken in several different jurisdictions. The article canvasses empirical research on the relationship between independent directors and corporate performance in the United States, as well as in China, and finds that the research yields similar conclusions: there is no strong link. The article concludes by arguing that proponents of the institution of independent directors misconceive the nature of the corporate governance problem in China, as well as the functioning of independent directors in the United States, and have not taken into account specific features of the Chinese institutional environment - particularly the legal environment - that affect the viability of any proposed solution.

Download or read book Independent Director System written by Yuhua Shi and published by . This book was released on 2005 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Independent Director System in China written by Zhao Yang and published by . This book was released on 2003 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Advisory Role of the Board written by Jing Liao and published by . This book was released on 2010 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the empirical results of the implementation of an independent director system in China. The results show that firms implement board independence by adding extra members, instead of removing inside directors, except in the case where the board size (before the recruitment of independent directors) has already been too large. It has been identified that large firms prefer a large board with more independent directors on the board. However, the largest shareholders have a strong incentive to organise a small and insider-controlled board. Although there is a negative relationship between board size, board independence and firm performance, Tobin's Q increases in relation to board size and board independence for large firms.

Download or read book Minimum Requirements for True Independence for Independent Directors written by Allan Verman Yap Ong and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditional tests to determine the independence of members of the board present an effort to establish independence by showing that the independent director can go about his duties without being beholden to the company in some manner, whether by pecuniary interest or by family or social relationships with other members of the company. But these tests assume that the corporation is situated in a certain legal and political environment where independent director functions are supported by other aspects of society and by law. This act of situating the company in such an environment makes many assumptions that cannot be safely made when evaluating the question of director independence in various foreign jurisdictions. From studying the legal background of the implementation of the independent director system in China, our answer to the question of whether independence is possible is a “yes” with a large “but.” Independence is possible if a political and legal environment nurtures the independent director and allows him to act in order to fulfill his tasks. Such an environment should first, place directors in the dominant position in the corporate organizational structure as the ultimate repository of the managerial powers in the corporation. Second, the securities market of the country should be mature enough to allow for the possibility of competing shareholder groups to be present within the corporation. Third, the corporation must be free to pursue profit maximization as its ultimate goal. Fourth, a strong and independent judiciary should be present that will equitably decide on lawsuits that may be filed to vindicate shareholder or director abuses. Lastly, the responsibilities for policing corporate action must be properly organized such that independent directors can proceed with their task knowing that they will be the ones ultimately responsible.

Download or read book The Corporate Board written by Ada Demb and published by Oxford University Press. This book was released on 1992-04-02 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written for practitioners, this book addresses corporate governance and the role of the board of directors in multinational corporations. Throughout the world, corporations are experiencing the second major transition in corporate governance of this century. The nature of the relationship between the corporation and the rest of society is changing fundamentally. The corporate board has unique responsibilities during this transition, but as it tries to respond directors are faced with destabilizing paradoxes: resolving who is in control--management or the board, achieving critical judgment while maintaining detachment, and avoiding becoming either a cozy club or a collection of all-stars. This book, based on interviews with 71 directors serving on more than 500 boards in eight countries, shows the nature of the challenges and suggests ways to analyze and confront them. This major international study compares the experiences of board members in Canada, Finland, France, Germany, Great Britain, the Netherlands, Switzerland, and Venezuela.

Download or read book Independent Directors in Asia written by Dan W. Puchniak and published by Cambridge University Press. This book was released on 2017-11-02 with total page 638 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rise of the independent director in Asia is an issue of global consequence that has been largely overlooked until recently. Less than two decades ago, independent directors were oddities in Asia's boardrooms. Today, they are ubiquitous. Independent Directors in Asia undertakes the first detailed analysis of this phenomenon. It provides in-depth historical, contextual and comparative perspectives on the law and practice of independent directors in seven core Asian jurisdictions (China, Hong Kong, India, Japan, Singapore, South Korea, Taiwan) and Australia. These case studies reveal the varieties of independent directors in Asia, none of which conform to its original American concept. The authors develop a taxonomy of these varieties, which provides a powerful analytical tool for more accurately understanding and effectively researching independent directors in Asia. This new approach challenges foundational aspects of comparative corporate governance practice and suggests a new path for comparative corporate governance scholarship and reform.

Download or read book Independent Directors in Corporate Governance written by Wenge Wang and published by . This book was released on 2014 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conventional wisdom holds that independent directors can improve corporate governance in publicly traded corporations. This author argues that independent directors may play an important role in improving corporate governance in theory but not in reality and the inefficiency of independent directors lends no benefit to sound corporate governance no matter what kind of corporate governance model is adopted, either the Anglo-American unitary model or the Chinese hybrid model. Thus, to evaluate the role of independent directors in corporate governance is the subject of this PhD project. The purpose is to find out whether a sound system of independent directors, especially in the case of Chinese practice, will lead to good corporate governance. Evaluation is carried out by way of a combined research methodology of a comparative study in corporate law between the US, New Zealand and China, where independent directors are in place in publicly traded corporations, and a meta-empirical study in corporate governance with focus on independent directors and corporate performance in Chinese listed companies. The comparative study in corporate law conducted by this research has examined the role of independent directors in corporate governance in the United States, New Zealand and China, which investigates not only the evolution and development of corporate governance and independent directors but also ownership structure, the board of directors, board independence and the supervisory board in connection with the role of independent directors in corporate governance in the targeted jurisdictions. The meta-empirical study reviews and generalizes the existing empirical evidence on the relationship between independent directors and corporate performance in Chinese listed companies. The main finding presented in this research reveals that the transplantation of independent directors from the unitary board model in corporate America into the two-tier board model in corporate China is a misfit in the form of the hybrid board model in China. This suggests that there is a need to improve the efficiency and effectiveness of the monitoring role of independent directors in corporate governance in Chinese listed companies, bearing in mind the fact that independent directors are a given in the current corporate governance system in China.

Download or read book Corporate Governance written by Yi Cheng and published by . This book was released on 2004 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Chinese Independent Director Mechanism Under Changing Macro Political Economic Settings written by Chien-Chung Lin and published by . This book was released on 2018 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: The structure of this article is as follows: Part II will provide a brief history of the Chinese Economic Reform Era and the basic structure of the Chinese Company Law, and then discuss the legal framework about independent directors in Chinese corporate law. Part III will focus on structural issues of Chinese corporate governance and recent changes, including the modernization of state-owned enterprises, the banking sector, and the stock market. It will highlight the difficulties as well as the possibilities that this mechanism faces in a broader context. Part IV will analyze several different surveys on the results of this new legal design. This section will provide a more comprehensive view on the implementation of the independent director mechanism after its first decade in China. Also, the critiques of this new mechanism will be examined and assessed. Part V begins with an analysis of the core governance issues China is dealing with today and to what extent the current independent director mechanism is helping to solve those issues. After discussing its current ineffectiveness, this section will propose two possible models in which independent directors can play a role as social, economic, and political conditions continue to evolve in China. The purpose of this analysis is to help answer the question of whether the independent director mechanism is a reasonable choice in light of the current conditions in China and to suggest possible strategies to maximize its efficacy. Part VI will briefly conclude this article.

Download or read book Corporate Governance Strengthening Latin American Corporate Governance The Role of Institutional Investors written by OECD and published by OECD Publishing. This book was released on 2011-07-01 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report reflects long-term, in-depth discussion and debate by participants in the Latin American Roundtable on Corporate Governance.

Download or read book Corporate Governance in China written by Jian Chen and published by Psychology Press. This book was released on 2005 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: The nature of corporate governance is a key determinant of corporate performance and, therefore, of a country's overall economic power. This title examines key questions relating to corporate governance in China, exploring differences between private and state-owned companies.

Download or read book Independent Directors and Corporate Performance in China written by Wenge Wang and published by . This book was released on 2014 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article reviews empirical studies on the relationship between independent directors and firm performance in Chinese listed companies. The purpose is to generalize empirical evidence on the theoretical claim that independent directors can improve firm performance by performing their monitoring role over management as expected by Chinese regulators. To fulfil this purpose, this article conducts a meta-empirical study by collecting 30 sample articles of existing empirical studies on the relationship between independent directors and firm performance in Chinese listed companies after the independent director institution has been introduced from corporate America to corporate China. The meta-empirical study is to review and generalize an integrated empirical evidence whether independent directors can improve firm performance in Chinese listed companies or not. Based on the statistical data from 30 collected sample articles, this article identifies four categories (board independence, independent directors' characteristic, background and compensation) that authors of 30 sample articles use to test the correlation between independent directors and firm performance in Chinese listed companies. From the integrated empirical evidence from 30 collected sample articles, this article finds on the whole that board independence has no significant impact on firm performance, that independent directors' characteristics and background have a controversial effect on firm performance and that independent directors' compensation has a significant positive effect on firm performance. This may suggest that independent directors may primarily play an advisory role but not a monitoring role in Chinese listed companies.

Download or read book The Legal System of Independent Directors in Corporate Governance in US UK and EU and Its Guidance for China written by and published by . This book was released on 2006 with total page 138 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Executive Compensation and Shareholder Value written by Jennifer Carpenter and published by Springer Science & Business Media. This book was released on 2013-04-17 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: Executive compensation has gained widespread public attention in recent years, with the pay of top U.S. executives reaching unprecedented levels compared either with past levels, with the remuneration of top executives in other countries, or with the wages and salaries of typical employees. The extraordinary levels of executive compensation have been achieved at a time when U.S. public companies have realized substantial gains in stock market value. Many have cited this as evidence that U.S. executive compensation works well, rewarding managers who make difficult decisions that lead to higher shareholder values, while others have argued that the overly generous salaries and benefits bear little relation to company performance. Recent conceptual and empirical research permits for the first time a truly rigorous debate on these and related issues, which is the subject of this volume.