Guanxi, Mianzi, and Business : The Impact of Culture on Corporate Governance in China
Before taking advantage of the growing opportunities of the Chinese market, investors will do well to understand the strong influence of Chinese culture on the way businesses operate, how they govern themselves, and how they interact with each othe...
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| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2012/09/16750630/guanxi-mianzi-business-impact-culture-corporate-governance-china http://hdl.handle.net/10986/17094 |
| Summary: | Before taking advantage of the growing
opportunities of the Chinese market, investors will do well
to understand the strong influence of Chinese culture on the
way businesses operate, how they govern themselves, and how
they interact with each other. The author (David Smith)
identifies two key cultural and sociological issues of
particular interest guanxi (relationships and networks) and
mianzi (face). He analyzes their most common implications
for investors in areas such as related-party transactions,
board composition and deliberations, and shareholder engagement. |
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