The Comparison on Corporate Governance between Temasek and State-Owned Companies in China

Abstract:

This paper proceeds as follows. Corporate governance, broadly speaking, is a science which studies enterprise power arrangement. In the narrow sense, it belongs to the ownership of enterprises; it is a science which researches how to empower professional managers and to use regulatory authority to their performance of duties. The improvement of the efficiency of the state-controlled corporate governance depends on the choice of corporate governance mechanism. Constrained by the institutional environment, the corporate governance is also affected by the internal governance structure. State-owned enterprises still face great difficulties when they manager to make a clear boundary between the central enterprises and government, separate ownership and management completely, achieve a sound governance structure. Temasek has a high quality management mode. The company special board composition and the control method of the layered progressive and effective restraint mechanism play a key role. State-owned enterprises can learn from Temasek’s experience of corporate governance, and promote the reform of the governance structure, to stimulate the vitality of enterprises.

• Periodical: Advanced Materials Research (Volumes 998-999)
• Pages: 1634-1637
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.998-999.1634
• Online since: July 2014
• Authors: Xu Bei Zhang*
• Keywords: Corporate Governance, Governance Structure, State-Controlled Enterprise, Temasek

References

[1] Xiangrong Li,: Research on the Governance Mechanism of State-owned Listed Company(Economy&Management Publishing House, Beijing, 2013).

[2] Jan.R. Williams, SusanF. Haka, MarkS. Bettner, JosephV. Carcello,: Financial&Managerial Accounting(China Machine Press, Beijing, 2007).

[3] Information on http: /www. temasek. com. sg.

[4] Information on http: /www. cntheory. com.