Working papers in Chinese Social Sciences

WORK IN PROGRESS! Please visit us again, this website is regularly updated. pdf files of papers will be added continuously.

This section is an free outlet for contributions of Chinese scholars who want to publish their ongoing work very early, without having to bother for editorial work and other kinds of academic censorship and so-called quality control. We simply offer fresh ideas.

Chinese colleagues are invited to contact me directly and submit their contributions. So far, there is no systematic structure of content. Therefore, every potential author is requested to add a short abstract which is published on this website along with the full pdf-version.

We have:

• The Evolution of the Stock Market in China
• CEO Succession: Western Theory and Chinese Practice
• The Process of Institutional Innovation in Networks
• On the Entrepreneurial Mechanism of Restructuring China's SOE

The short piece shows that a mere performance oriented evaluation of recent stock market evolution in China is not sufficient to assess institutional progress toward the market economy. Tne author shows that the Chinese stock market does not follow fundamental values of openness, justice and equality that are the backbone of a workable economic order.
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The paper reviews Western literature on CEO succession. With China now having undergone a twenty-years transition to the market economy, CEO succession is becoming a central issue in corporate leadership. The paper uses different analytical categories (time of succsssion, mode of succession, decision making unit etc.) developed in the Western context to understand the recent Chinese experience. There is an obvious impact of ownership regimes, however, with performance being one of the crucial determinants of succession. Especially in state-owned industries, insider control remains strong. For all kinds of firms the emergence of the professional manager can be observed.
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The basic viewpoint of this paper is that institutional innovation can be regarded as a new 'connection'; hence the process of institutional innovation itself is a process of the use of knowledge and the growth of knowledge. Networks provide the 'context' for this kind of innovation and facilitate the institutional entrepreneurs to promote innovation. Based on static analysis of network structures this paper attempts to develop a dynamic model to illustrate the process of institutional innovation. The focus of the paper is on the creativity and the coordination function of the entrepreneur and the interaction between the entrepreneur and agents to achieve the new 'connection'.
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This paper holds that it is significant to attach much importance to the restructuring of SOE and the entrepreneurial mechanism. Through the positive analysis, we find that the achievements of the economic reform in China attribute not only to non-state sector, but also to state sector through the restructuring of SOE. Then we divide the restructuring of SOE into two stages, and discuss how the entrepreneurial mechanism functions in each of them, especially emphasizing the practical meaning of that in the second stage. At the last section of this paper, we depict and analysis the relationship between the entrepreneurial capacity and their differentiation among the enterprises through a simple geometry model, and draw the conclusion that residual control rights and property rights are the two key factors to influence the entrepreneurial mechanism. Therefore, an effective incentive mechanism should be established between the two factors and the entrepreneurial capacity.
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