How to evaluate company directors at state owned enterprises? A framework of virtue and competence based on the Chinese experience

Xuhong Xu, Tiancheng Hu, Rui Guo, Shang Chen and Lutao Ning

International Journal of Emerging Markets, 2023, vol. 20, issue 1, 230-258

Abstract: Purpose - This paper proposes a framework for director evaluation in the context of Chinese state-owned enterprises (SOEs), taking into account the influences of traditional and modern Chinese ideologies. Design/methodology/approach - Following the Delphi method, a series of semi-structured interviews were conducted with Chinese SOE directors. Findings - The framework used has been validated by examining seven dimensions of virtue and four dimensions of competence functions in Chinese SOEs. Effective and representative characteristics of each dimension are identified through interviews. Originality/value - First, through this research, indicators of virtue have been materialized and those of competence have been specified in a broader range. Second, this research provides advice for training of candidate directors whose experience were in private firms before they step in as SOE directors.

Keywords: State-owned enterprises; Director evaluation; Virtue and competence; China; Corporate governance; Interview; G32; G34; L32; M14 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoemp:ijoem-01-2022-0150

DOI: 10.1108/IJOEM-01-2022-0150

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