Publication:
Effective Discipline with Adequate Autonomy : The Direction for Further Reform of China's SOE Dividend Policy

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dc.contributor.authorZhang, Chunlin
dc.contributor.authorWang, Lihong
dc.date.accessioned2014-07-17T23:33:00Z
dc.date.available2014-07-17T23:33:00Z
dc.date.issued2009-11
dc.description.abstractThis note explores the desirable direction for further reform of China's state-owned enterprise (SOE) dividend policy. This study represents an effort in exploring the desirable direction for further reform. It is an extension of the previous World Bank studies (World Bank, 2005, 2007) on this subject. It argues that a sound dividend policy must generate effective discipline against insiders and leave adequate managerial autonomy to them in the meantime. Considering China's current situation in light of relevant international experience, this study recommends three actions for the government to take to deepen the reform. The first is to raise the flexibility of SOE dividend ratio by adding a dividend ratio determination mechanism to the existing system of state ownership function. The second involves government monitoring and adjustment of the average dividend ratio of all central SOEs. The third is to start integrating state capital management budget (SCMB) with the general budget. The rest of the note is organized as follows. Section two discusses the nature of the issue and the criteria that a sound dividend policy must meet. Section three-five reviews payout practices of private sector firms (mainly publicly held companies but also include privately held firms), non-Chinese SOEs, and Hong Kong listed Chinese SOEs. Section six presents recommendations regarding the direction for further reform.en
dc.identifierhttp://documents.worldbank.org/curated/en/2009/11/11880532/effective-discipline-adequate-autonomy-direction-further-reform-chinas-soe-dividend-policy
dc.identifier.doi10.1596/18902
dc.identifier.urihttps://hdl.handle.net/10986/18902
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTANT
dc.subjectACCOUNTING
dc.subjectADMINISTRATIVE COST
dc.subjectADVANCED ECONOMIES
dc.subjectAGENCY COSTS
dc.subjectAGENCY PROBLEM
dc.subjectAGENCY PROBLEMS
dc.subjectAIR
dc.subjectAIRLINE COMPANIES
dc.subjectAIRLINE INDUSTRY
dc.subjectAIRPORT
dc.subjectAIRPORTS
dc.subjectASSET MANAGEMENT
dc.subjectASSETS
dc.subjectAUTOMOBILE
dc.subjectBAD DEBT WRITE-OFF
dc.subjectBANK BORROWING
dc.subjectBOND
dc.subjectBOND ISSUANCE
dc.subjectBONDHOLDERS
dc.subjectBROADCASTING SYSTEM
dc.subjectBUDGETARY ALLOCATION
dc.subjectBUDGETING
dc.subjectCAPITAL BASE
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL GAINS
dc.subjectCAPITAL INJECTION
dc.subjectCAPITAL INVESTMENT
dc.subjectCAPITAL INVESTMENTS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCAPITAL STRUCTURE
dc.subjectCASH FLOW
dc.subjectCASH FLOWS
dc.subjectCASH PAYMENT
dc.subjectCASH PAYMENTS
dc.subjectCASH TRANSFER
dc.subjectCIVIL LAW
dc.subjectCOMMON LAW
dc.subjectCOMMON LAW COUNTRIES
dc.subjectCOMMON STOCK
dc.subjectCOMPANY LAW
dc.subjectCORE BUSINESS
dc.subjectCORPORATE DIVIDEND
dc.subjectCORPORATE DIVIDEND POLICIES
dc.subjectCORPORATE INSIDERS
dc.subjectDEBT
dc.subjectDEREGULATION
dc.subjectDISTRIBUTION OF INCOMES
dc.subjectDIVERSIFIED PORTFOLIO
dc.subjectDIVESTMENTS
dc.subjectDIVIDEND
dc.subjectDIVIDEND PAYMENT
dc.subjectDIVIDEND PAYOUT
dc.subjectDIVIDEND PAYOUT RATIO
dc.subjectDIVIDEND POLICIES
dc.subjectDIVIDEND POLICY
dc.subjectDIVIDEND SMOOTHING
dc.subjectDIVIDEND YIELD
dc.subjectDIVIDENDS
dc.subjectECONOMIC VALUE ADDED
dc.subjectEQUITY CAPITAL
dc.subjectEQUITY HOLDERS
dc.subjectEQUITY STAKES
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPROPRIATION
dc.subjectEXTERNAL FINANCING
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL RESOURCES
dc.subjectFINANCIAL SITUATION
dc.subjectFINANCIAL STATEMENTS
dc.subjectFINANCING ARRANGEMENTS
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT OWNERSHIP
dc.subjectGRACE PERIOD
dc.subjectGROWTH RATE
dc.subjectHOLDINGS
dc.subjectINCOME
dc.subjectINFORMATION ASYMMETRY
dc.subjectINSTITUTIONAL FRAMEWORK
dc.subjectINSTRUMENT
dc.subjectINSURANCE
dc.subjectINSURANCE COMPANIES
dc.subjectINTERNAL FINANCING
dc.subjectINTERNATIONAL FIRMS
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT EFFICIENCY
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT OPPORTUNITY
dc.subjectINVESTMENT PROJECTS
dc.subjectJUDGMENT
dc.subjectJURISDICTION
dc.subjectLARGE SHAREHOLDERS
dc.subjectLEGAL POWER
dc.subjectLIQUIDATION
dc.subjectLOCAL GOVERNMENTS
dc.subjectLOSS-MAKING
dc.subjectMARKET CAPITALIZATION
dc.subjectMARKET COMPETITION
dc.subjectMARKET ECONOMIES
dc.subjectMARKET ECONOMY
dc.subjectMARKET INFORMATION
dc.subjectMARKET MANIPULATION
dc.subjectMARKET SHARE
dc.subjectMARKET VALUE
dc.subjectMARKET VALUE OF EQUITY
dc.subjectMATURITY
dc.subjectMINORITY SHAREHOLDERS
dc.subjectMONOPOLY
dc.subjectNATIONAL BUDGET
dc.subjectNEGOTIATION
dc.subjectNET PROFIT
dc.subjectNET PROFITS
dc.subjectNPV
dc.subjectOPEN MARKET
dc.subjectOPPORTUNITY COST
dc.subjectOWNERSHIP RIGHTS
dc.subjectOWNERSHIP STRUCTURE
dc.subjectPARENT COMPANIES
dc.subjectPENALTY
dc.subjectPORTFOLIO
dc.subjectPRIVATIZATION
dc.subjectPROFITABILITY
dc.subjectPROTECTION OF MINORITY SHAREHOLDERS
dc.subjectPUBLIC COMPANY
dc.subjectPUBLIC SPENDING
dc.subjectRAIL
dc.subjectRAILWAYS
dc.subjectREAL ESTATE
dc.subjectREDEMPTION VALUE
dc.subjectREGULATORS
dc.subjectREGULATORY BODIES
dc.subjectREINVESTMENT
dc.subjectREPO
dc.subjectRESERVES
dc.subjectRETAINED EARNINGS
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISKY INVESTMENT
dc.subjectSALARY
dc.subjectSECURITIES
dc.subjectSECURITIES EXCHANGE
dc.subjectSETTLEMENT
dc.subjectSHAREHOLDER
dc.subjectSHAREHOLDER VALUE
dc.subjectSHAREHOLDERS
dc.subjectSHAREHOLDERS MEETING
dc.subjectSHAREHOLDING
dc.subjectSHARES OUTSTANDING
dc.subjectSTATE OWNED ENTERPRISE
dc.subjectSTATE OWNED ENTERPRISES
dc.subjectSTATEMENT
dc.subjectSTOCK EXCHANGE
dc.subjectSTOCKS
dc.subjectTARGET DIVIDEND
dc.subjectTARGET PAYOUT RATIO
dc.subjectTAX
dc.subjectTAX RATE
dc.subjectTELECOMMUNICATIONS
dc.subjectTOTAL MARKET CAPITALIZATION
dc.subjectTRADE POLICY
dc.subjectTRANSACTION
dc.subjectTRANSACTION COST
dc.subjectTRANSPORT
dc.subjectTRANSPORTATION
dc.subjectTREASURY
dc.subjectTRUE
dc.subjectVALUATION
dc.subjectWEAK CORPORATE GOVERNANCE
dc.titleEffective Discipline with Adequate Autonomy : The Direction for Further Reform of China's SOE Dividend Policyen
dspace.entity.typePublication
okr.date.doiregistration2025-05-07T11:40:46.370660Z
okr.doctypeEconomic & Sector Work::Policy Note
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/2009/11/11880532/effective-discipline-adequate-autonomy-direction-further-reform-chinas-soe-dividend-policy
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTransport and ICT
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid358411468024535236
okr.guid963631468011136270
okr.identifier.externaldocumentum000333038_20100302031054
okr.identifier.internaldocumentum11880532
okr.identifier.report53254
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/03/02/000333038_20100302031054/Rendered/PDF/532540ESW0P11310final0Nov27020090En.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryChina
okr.sectorPublic Administration, Law, and Justice :: General public administration sector
okr.sectorIndustry and trade :: General industry and trade sector
okr.themeFinancial and private sector development :: State enterprise/bank restructuring and privatization
okr.themeEconomic management :: Other economic management
okr.themeFinancial and private sector development :: Corporate governance
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPrivate Sector Development::Emerging Markets
okr.topicTransport Economics Policy and Planning
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicTransport
okr.unitFinancial & Private Sector Unit (EASFP)
okr.volume1 of 1
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