“…For example, the state became a substantial co-owner in just about all of the major corporations, and crucially exercised its option to have a significant presence within the shareholder bodies, particularly with corporations receiving substantial investment subsidies. The importance of this kind of state-private co-partnership system (SPCS) can be recognised as a monitoring mechanism necessary in order to protect firm-specific investment subsidies from expropriation by investor insiders, which was a widespread practice during the 1990s (Goldman, 2003;Gregory and Schrettl, 2004;Bahry, 2005;Dininio and Orttung, 2005;Ivanenko, 2005;Tompson, 2005). In other words, we argue that SPCS plays a subtle role in preventing inside investors from sub-optimally terminating longer-term investment projects, especially state-subsidized projects.…”