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:

External Locus

A belief system where an individual attributes their successes and failures to external factors and influences rather than their own efforts.

Control

The power to influence or direct people's behavior or the course of events, often studied as a trait that contributes to psychological well-being when effectively balanced.

Locus of Control

A psychological concept referring to an individual's belief about how much control they have over the outcomes of events in their lives, ranging from internal (a belief in personal control) to external (a belief that outside forces dominate).

Mental Health

A condition where an individual is in good health, acknowledges personal capabilities, handles life's usual stresses well, contributes positively to work, and actively supports the community.