Exploring corporate governance in Chinese-controlled subsidiaries in Australia

Chinese firms have established 18,000 subsidiaries or branches in foreign countries over the past three decades. However, there remains a paucity of research devoted to how these Chinese multinational corporations (MNCs) govern their foreign subsidiaries. This paper explores corporate governance in eight Chinese subsidiaries in Australia, drawing on both institutional logics perspective and resource-based theory. Chinese-controlled subsidiaries display several characteristics of the corporate control model in China in the areas of director appointment and executive compensation. These corporate governance practices are moderated by Australian institutions, the MNCs' organisational resources and experience, and the size and complexity of their foreign subsidiary's operations. Implications have been suggested based on the findings.