Which of the Following Is FALSE About Corporate Governance in China

question 27

Multiple Choice

Which of the following is FALSE about corporate governance in China?

• A) The Chinese governance system may be tilting toward the Western model.
• B) With increasing frequency, the compensation of top executives of Chinese companies is closely related to prior and current financial performance of the firm.
• C) The state still uses direct and/or indirect controls to influence the strategies employed by most firms.
• D) Firms with higher state ownership tend to have lower market value and more volatility in those values over time.

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Definitions:

Educating Policymakers

Educating policymakers involves providing information and evidence to those in positions of making laws and policies, to inform their decisions and actions.

Political Information

Data or knowledge related to government, politics, policies, and the political process.

Political Action Committees

Organizations that collect funds from donors to support or oppose political candidates, legislation, or policies.

Campaign Finance Laws

Regulations aimed at controlling the spending and fundraising activities of political campaigns to ensure fairness, transparency, and reduce the influence of wealthy individuals and corporations on elections.