This book is about privatisation and corporate governance, examining the association between state ownership and firm performance in privatised firms in China. The book presents two arguably novel approaches. First, it distinguishes itself by proving the mediating role of agency costs in the ownership/performance association. Second, it demonstrates that debt, as a source of corporate governance in the nuanced institutional context of transition economies, moderates the association between state ownership and firm performance. Given the possible power and/or efficiency influences of the Chinese government in the context of nascent Chinese institutions, the book may have practical significance for policy makers and other practitioners such as international managers and investors planning to invest in the country. Moreover, it may be a useful reference for examining similar issues in other transition economies.