Counter-Arguments to the Notion of Confucianism as a Fundamental Cure for China's Corporate Governance Problems

Abstract

By employing the path-dependence theory, this paper suggests that it is difficult for China’s existing corporate governance regime to be partially replaced by Confucian moral standards. In fact, it is even difficult for Confucianism to co-exist with the current regime. By recognising the complexity of Confucianism, this paper also demonstrates the inability of Confucianism to reduce corruption and improve managerial behaviour in Chinese corporate government.

Keywords: Confucianism, China's Corporate Governance, Path-dependence

JEL Classification: K22