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003			OSt
005			20191118172054.0
008			191118b ||||| |||| 00| 0 eng d
100			_aYiu, Daphne W. _934924
245			_aAlternative Governance and Corporate Financial Fraud in Transition Economies: Evidence From China
300			_a2685-2720 p.
520			_aHow corporate governance mechanisms function in transition economies is a key topic for corporate governance researchers and policy makers. We propose that alternative governance mechanisms are in place to mitigate corporate fraudulent behaviors in the fluid state of transition economies where the establishment and enforcement of corporate governance legislation are presently insufficient. Drawing on the twin set of institutional logics—the institutional embeddedness logic and the institutional substitution logic—we posit that three salient types of prevailing alternative governance mechanisms (relational, administrative, and foreign governance) play important roles in transition economies because they are complementary to the institutional conditions at the time of the transition process. Conducting a bivariate probit analysis of a matched sample of corporate financial fraud cases in China, we find that strategic alliances, business group affiliation, nontradable state shares, local government ownership, use of foreign auditors, and foreign listing can deter corporate financial fraud, while foreign listing is also effective in detecting fraud. We also find that the deterrence effects of strategic alliances and business group affiliation become weaker as law development improves, while foreign listing and legal governance are completely substitutive. Our study provides a contextualized view of corporate governance that connects its effectiveness with institutionalization and the institutional state of a country. Our study also enriches our understanding of some unfamiliar forms of governance mechanisms that are in place and complementary to a country’s institutional conditions
653			_acorporate governance
653			_acorporate fraud
653			_ainstitutional embeddedness
700			_aWan, William P. _934925
700			_aXu, Yuehua _934926
773	0		_029017 _977320 _aDEBORAH E. RUPP _dWEST LAFAYETTE SAGE PUBLICATION 2012 _o55511131 _tJOURNAL OF MANAGEMENT _x 0149-2063
942			_2ddc _cJA-ARTICLE