Editing Corporate transparency (section)

== China ==

In 2008, researchers found that value maximization might not be the ultimate goal of Chinese listed companies as a result of the Chinese government being the major shareholder of [[state-owned enterprises]] (SOE). Comparing listed companies in different markets, it seems that those with sound corporate governance practices tend to showcase relatively good performance, which was in contrast to the situation in the Chinese market. It was believed that implementation of new reforms would result in higher corporate transparency of Chinese firms.<ref>{{cite journal |last1=CHEUNG |first1=Yan-Leung |last2=JIANG |first2=Ping |last3=LIMPAPHAYOM |first3=Piman |last4=LU |first4=Tong |title=Does corporate governance matter in China? |journal=China Economic Review |date=September 2008 |volume=19 |issue=3 |pages=460–479 |doi=10.1016/j.chieco.2008.01.002 }}</ref>

In 2002, the [[China Securities Regulatory Commission]] (CSRC) issued a code of corporate governance affecting practices and structures employed by Chinese firms. One year later, the CSRC allowed qualified foreign [[institutional investors]] (QFII) to enter the Chinese stock market. It was found that QFIIs have greater control over state shareholders in state-owned companies than domestic mutual funds and are more prone to act as unbiased monitoring body.<ref>{{cite journal |last1=Huang |first1=Wei |last2=Zhu |first2=Tao |title=Foreign institutional investors and corporate governance in emerging markets: Evidence of a split-share structure reform in China |journal=Journal of Corporate Finance |date=June 2015 |volume=32 |pages=312–326 |doi=10.1016/j.jcorpfin.2014.10.013 |s2cid=3366775 }}</ref>

Institutional ownership has positive effect on both, corporate governance transparency and accounting information transparency. However, there is not sufficient amount of evidence to support the claim that higher levels of corporate transparency lead to higher levels of institutional ownership in China.<ref>{{cite journal |last1=Liu |first1=Ningyue |last2=Laing |first2=Elaine |last3=Cao |first3=Yue |last4=Zhang |first4=Xiaofei |title=Institutional ownership and corporate transparency in China |journal=Finance Research Letters |date=March 2018 |volume=24 |pages=328–336 |doi=10.1016/j.frl.2017.12.001 }}</ref>