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 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.

Bibliographic Details

Main Author:	Smith, David
Language:	English en_US
Published:	World Bank, Washington, DC 2012-09
Subjects:	ACCOUNTING, ACCOUNTING RULES, ASSET MANAGEMENT, BARRIER, BARRIER TO ENTRY, BEST PRACTICES, BOND, BONDS, BUSINESS ASSOCIATIONS, BUSINESS ENTITIES, BUSINESS ENVIRONMENT, BUSINESS ENVIRONMENTS, BUSINESS INTERACTION, BUSINESS LAW, BUSINESS LEADERSHIP, BUSINESS OPERATION, BUSINESS PARTNER, BUSINESS PARTNERS, BUSINESS PERSPECTIVE, BUSINESS PRACTICES, BUSINESS RELATIONSHIP, BUSINESS RELATIONSHIPS, BUSINESS STRATEGY, BUSINESS UNIT, BUSINESS UNITS, BUSINESSES, CAPACITY-BUILDING, CAPITAL MARKET, CHIEF EXECUTIVE, COLLECTIVISM, COMMERCIAL BANKS, COMPANY, COMPANY LAW, COPYRIGHT, CORPORATE GOVERNANCE, CORPORATE GOVERNANCE PRINCIPLES, CORPORATE GOVERNANCE REFORM, CORPORATE PERFORMANCE, CORPORATE SCANDAL, CORPORATE SOCIAL RESPONSIBILITY, CORPORATION, CORPORATIONS, COUNTRY TO COUNTRY, CUSTOMS, DERIVATIVE, DEVELOPING COUNTRIES, DOMESTIC CAPITAL, DUE DILIGENCE, ECONOMIC INTEGRATION, EMERGING ECONOMY, EMERGING MARKETS, EMPLOYMENT, EXPOSURE, FINANCE CORPORATION, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FIRM PERFORMANCE, FIRM VALUATIONS, FIRMS, FOREIGN INSTITUTIONAL INVESTOR, FOREIGN INVESTORS, GLOBAL CAPITAL, GLOBAL CAPITAL MARKETS, GLOBAL CORPORATE GOVERNANCE, GLOBAL PRIVATE SECTOR, GLOBAL STANDARDS, GLOBALIZATION, GOVERNANCE ISSUES, GOVERNMENT POLICY, HARMONIZATION, HOLDING, HUMAN RELATIONSHIPS, ID, INDEPENDENT DIRECTORS, INDIVIDUALS, INSTITUTION, INSTITUTIONAL INVESTOR, INSTITUTIONAL SHAREHOLDER, INSURANCE, INTERNATIONAL BUSINESS, INTERNATIONAL CORPORATE GOVERNANCE, INTERNATIONAL FINANCE, INTERNATIONAL STANDARDS, IPO, LIABILITY, LICENSES, LIMITED, LISTED COMPANIES, LISTED COMPANY, LOAN, LOCAL GOVERNMENT, LOCAL INSTITUTIONS, LTD., MAJORITY SHAREHOLDERS, MANAGERS, MARKETING, MATERIAL, MINORITY SHAREHOLDERS, MUTUAL FUNDS, OUTPUT, OWNERSHIP STRUCTURES, PARENT COMPANY, PARTY, PENSION, PENSION FUNDS, PRIVATE COMPANIES, PRIVATIZATION, PUBLIC CORPORATIONS, PUBLIC MARKET, QUERIES, RESULT, SALE OF A BUSINESS, SALE OF PROPERTY, SECURITIES, SHARE MARKET, SHAREHOLDER, SHAREHOLDER ENGAGEMENT, SHAREHOLDERS, SOCIAL NETWORKS, SOCIETIES, SOCIETY, STATE ENTERPRISES, STOCK EXCHANGES, STORE, SUBSIDIARY, SUPPLIER, TELEPHONE, TRACK RECORD, TRADING, TRANSACTION, TRANSPARENCY, TRUST FUND, USER, USERS,
Online Access:	http://documents.worldbank.org/curated/en/2012/09/16750630/guanxi-mianzi-business-impact-culture-corporate-governance-china https://hdl.handle.net/10986/17094
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