Relational dimensions of corporate governance in translation: networked governance in China and India

The effectiveness of corporate governance mechanisms has been a subject of academic research for many decades. Although the large majority of corporate governance studies prior to mid 1990s were based on data from developed market economies such as the U.S., U.K. and Japan, in recent years researchers have begun examining corporate governance in transition economies. A comparison of China and India offers a unique environment for analyzing the effectiveness of corporate governance. First, both countries state-owned enterprise (SOE) reform strategies hinges on the Modern Enterprise System characterized by the separation of ownership and control. Ownership of an SOE’s assets is distributed among the government, institutional investors, managers, employees, and private investors. Effective control rights are assigned to management, which generally has a very small, or even nonexistent ownership stake. This distinctive shareholding structure creates conflict of interest not only between management (insiders) and outside investors but also between large shareholders and minority investors. Moreover, because both governments desire to retain some control—in part through partial retained ownership of commercialized SOEs, further conflicts arise between politicians and firms. Second, directors in publicly listed firms in both countries are predominantly drawn from institutions with significant non-market objectives: the government and other state enterprises, particularly in China, and extended families, particularly in India. As a result, the effectiveness of internal governance mechanisms, such as the number of independent directors on the board and the number of independent supervisors on the supervisory committee, are likely to be quiet limited, although this has yet to be fully evaluated. Third, because of the political nature of the privatization process itself, typical external governance mechanisms, such as debt (in conjunction with appropriate bankruptcy procedures), takeover threats, legal protection of investors, product market competition, etc., have not been effective. Bank loans have traditionally been viewed as grants from the state designed to bail out failing firms. State-owned banks retain monopoly or quasi-monopoly positions in the banking sector and profit is not their overriding objective. If political favor is deemed appropriate, subsidized loans, rescheduling of overdue debt or even outright transfer of funds can be arranged with SOEs (soft budget constraints). In addition, a market for private, non-bank debt is limited in India and has yet to be established China. There is no active merger or takeover activity in Chinese stock markets to discipline management. Information available in the capital markets is insufficient to keep at arm’s length of the corporate decisions. In light of the above peculiarities, China and India share many of the typical institutional characteristics as a transition economy, including poor legal protection of creditors and investors, the absence of an effective takeover market, an underdeveloped capital market, a relative inefficient banking system and significant interference of politicians in firm management. Su (2005) finds that the extent of political interference, managerial entrenchment and institutional control can help explain corporate dividend policies and post-IPO financing choices in this situation. Allen et al. (2005) demonstrate that standard corporate governance mechanisms are weak and ineffective for publicly listed firms while alternative governance mechanisms based on reputation and relationship have been remarkably effective in the private sector. Because the peculiarities are significant in this context, the differences in the political-economies of the two countries are likely to be evident in such relational terms. In this paper we explore the peculiarities of corporate governance in this transitional environment through a systematic examination of certain aspects of these reputational and relationship dimensions. Utilising the methods of social network analysis we identify the inter-organisational relationships at board level formed by equity holdings and by shared directors. Using data drawn from the Orbis database we map these relations among the 3700 largest firms in India and China respectively and identify the roles played in these relational networks by the particularly characteristic institutions in each case. We find greatly different social network structures in each case with some support in these relational dimensions for their distinctive features of governance. Further, the social network metrics allow us to considerably refine proxies for political interference, managerial entrenchment and institutional control used in earlier econometric analysis.

(Un)veiling desire: re-defining relationships between gendered adult education subjects and adult education programmes

My underlying argument, in this paper, is that conceptualisations of power as a commodity, through which the 'disempowered-as-illiterate' subject moves towards becoming an 'empowered-as-literate' subject, forces constructs of identities into a powerful/powerless dichotomy which does not always do justice to diverse experiences. The claimed 'empowering' intentions of adult education programme and policy practice may, in reality, contribute to the dominance of restrictive disciplining and regulatory discursive practices. Moving away from emancipatory trajectories of adult education programmes that allege only liberation from domination, through 'literacy', can promise freedom points to another position of hope. Drawing on Foucauldian analysis, I explore sites of resistance as possibilities of transforming 'structures of understanding' at different levels. Officially validated and recognised transformations, in adult education programme as well as policy understandings, of the 'illiterate' subject may also hope to include choices in postures of autonomy (see Spivak 1996) made by programme participants in other 'fields' of socio-cultural practice linked to their material realities. Subsequently, 'empowerment' of the 'illiterate Indian village woman' cannot solely be imagined as a product of laws, policies and institutional discursive practices (see, for example, Gouws 2005; Rai 2003 on gender mainstreaming and Mosse 2005 on aid policy and practice). The 'illiterate Indian village woman' represented as a site of resistance, throughout this paper, displaces homogeneous representations of the 'illiterate' which situate her in the role of 'dependent' or 'victim', as failed attempts to rob her of her historical and political agency (Mohanty 1996). Through narrating other 'images' of refusal in my ethnographic vignettes, I hope to recognise different individuals' sense of agency, at all levels, as embedded in and evolving through forms of collective action that activate differences in order to develop possibilities and sustain hope for transforming historically rooted discursive practices of inequality. I provide ethnographic accounts of resisting 'literacy' programme participants, based in different villages in Bihar (Northern India), as accounts of resistance impacted on by notions of norms, translating and interpreting Others, networks and empowerment.

Distress in children with learning disabilities at a respite unit: perspective on their experiences

Numerous studies have investigated the benefits of respite to families with a disabled child. Far fewer have examined the effects on the child and none have systematically compared information about this from different sources. Reports of behavioural reactions and views on distress were gathered from parents, teachers and respite staff. Children were also asked for their views. Over half the children (54%) were reported to show medium or strong negative reactions lasting for 1 or more days by a parent or teacher. Reported reactions varied widely between home and school and no concordance was found between parents, teachers and respite staff groups regarding distress. Some children's views differed from those of their parent or teacher. The findings highlight the extent of differences in perspectives and suggest the need for greater awareness of the possible distress to children attending respite. This is discussed in relation to factors such as the potential conflict of interests between parents and children, communication and behavioural difficulties, and the context in which the child is observed.