Abstract:
Since 1978, as a result of the politics of “Opening to the Outside World”, China experienced an economic upswing and a transformation from a centrally-planned economy to a market economy. In this context, many state-owned enterprises have been restructured into corporations. However, investor protection has been often neglected during the reform process due to an excessive emphasis on efficiency. Rules on corporate monitoring constitute a very important aspect of investor protection. The present study systematically analyzes the rules of corporate monitoring, namely the monitoring through corporate governance according to corporate law, the monitoring from the perspective of capital markets law and then the monitoring of executive compensation in their current state of development. Further, this study shows the influence of economic structure and development of corporate structures on the monitoring system of corporations and presents the current problems of regulations on corporate monitoring in China.