Based on a survey that we designed and that covers a stratified random sample of 12,400 firms in 120 cities in China with firm-level accounting information for 2002-2004, this paper examines the presence of systematic distortions in capital allocation that result in uneven marginal returns to...

As more investors have bought shares in Asian companies, global interest in these firms' corporate governance has soared. Firms like Institutional Shareholder Services have begun to rate Asian firms' corporate governance, assigning them "Corporate Governance Quotients" (CGQ). Some research...