Which of the Following Is FALSE About Corporate Governance in China

question 149

Multiple Choice

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

• A) The Chinese governance system has been moving towards the Western model in recent years.
• B) The compensation of top executives of Chinese companies is closely related to prior and current financial performance of the firm.
• C) The state is becoming far less dominant in determining 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:

Market Interest Rate

The prevailing rate of interest available in the market for securities of comparable risk and maturity, influencing how much interest is paid on bonds and loans.

Loan Origination Fees

Charges paid to a lender or broker for processing a new loan application, used as compensation for putting the loan in place.

Periodic Interest Revenue

The interest income earned on investments during a specific period, reflecting the return on interest-bearing financial assets.

Note Proceeds

The amount of money received by a borrower from the lender when a note is issued; essentially the principal amount of the loan.