The agency model and corporate governance in China: In the context of privately-owned enterprises transformed to public corporations

In the context of transition, where the Chinese enterprises are seeking good models for the corporate governance, one Anglo-American corporate governance model, the agency model, seems to shed some light on enterprises that used to be privately-owned and have transformed into public corporations. Although the agency model might be a solution to the public corporations, it never the less fails to match the Chinese context in many respects. In light of the nature of the agency model and potential mismatches with the Chinese context, this thesis examines theoretical reasons that could account for the discrepancies between the two. It is argued that, despite the foreign nature of this model and the need for amendment, the Chinese public corporations are still be able to establish good corporate governance structure via it.