Corporate cross-shareholdings: Endogeneity. Efficiency. Regulation: Endogeneity. Efficiency. Regulation

Author: Gao Yu
Publisher:
Publish Date: 2006-02-01
Features: This book first analyzes the reasons for the emergence of the cross-shareholding system in Japanese enterprises from the perspective of the dissipation of the quasi-rent of managerial-specific human capital assets and its protection, as well as overcoming post-contractual opportunistic behavior of managers. Then, it examines the incentive issues within the enterprise by analyzing the changes in optimal incentives and incentive compatibility caused by cross-shareholding. Furthermore, it analyzes the efficiency and inefficiency of cross-shareholding in market transactions from both vertical and horizontal perspectives, along with the conditions for its establishment. Finally, based on a summary of government regulations on cross-shareholding abroad, combined with the actual situation of cross-shareholding in Chinese enterprises, the book focuses on exploring the implications of the cross-shareholding system for the reform of Chinese enterprises. A good work lies not only in interpreting current economic phenomena in China but also in predicting trends and grasping the direction for future development. This book is precisely such an academic treatise.