Description - The Theory of the Firm and Chinese Enterprise Reform by Xiao Qin
Changes to corporate structure, including the role of the corporate headquarters, have been key factors in bringing about economic reform in China. In this penetrating and insightful book, Dr Qin Xiao, inspired by the new institutional economists and his personal experience as president of CITIC, a well-known Chinese large business group, questions the conventional theory of the firm, arguing that the ultimate goal of the headquarters of modern large corporations is to function as a substitution for the market, and introducing a new explanation for the nature of the firm - the 'substitution function model'. He provides an insider's account of the reforms in CITIC, a rare narrative that should be essential reading for scholars and practitioners who care about the theory and practice of the firm, in particular in the context of Chinese enterprise reform.
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