Decentralization and Vertical Control in China’s Government Controlled Firms

DOI

10.2991/icemss-14.2014.3How to use a DOI?

Keywords

China’s government controlled firms, decentralization, vertical control.

Abstract

China’s government controlled firms face two conflict tasks: For one thing, government should credibly delegate efficiency to firms to make them competitive. For the other, the government also needs to control the firms to achieve their political goals. We suggest one way in which the China’s government solves this conflict tasks by building pyramidal business groups in which they delegate authority while simultaneously creating vertical correlations to maintain control. Further, we theorize that higher levels of government are more likely to pursue this strategy. Results of quantitative analysis of China’s government controlled business groups generally support our expectations.

Copyright

© 2014, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yanfeng Jiang
PY  - 2014/08
DA  - 2014/08
TI  - Decentralization and Vertical Control in China’s Government Controlled Firms
BT  - Proceedings of the 2nd International Conference on Education, Management and Social Science
PB  - Atlantis Press
SP  - 7
EP  - 10
SN  - 2352-5398
UR  - https://doi.org/10.2991/icemss-14.2014.3
DO  - 10.2991/icemss-14.2014.3
ID  - Jiang2014/08
ER  -