Chinese Culture and Corporate Governance: A Theoretical Review and Future Outlook

Current research on corporate governance in China remains largely confined to theoretical paradigms rooted in Western culture, with few studies achieving a profound understanding of the essence of Chinese culture. Unless this situation changes, it will be difficult to develop an autonomous knowledge system that is grounded in local contexts and capable of explaining and guiding corporate governance practices in China. Therefore, it is essential to systematically examine the theoretical relationship between Chinese culture and corporate governance and review the trajectory of past research. Accordingly, this article first explores several dimensions of Chinese cultural influence on corporate governance through five perspectives, which include “ethics as the foundation, upholding moral obligations and fulfilling duties” “family, nation, and the world as one, the world as one family” “education through ritual and music, virtue-based governance as the foundation” “inner sage, outer king, restrain oneself and conform to the rites” and “adapting to change, perpetual renewal”. Second, it reviews and evaluates theoretical research on Chinese culture and corporate governance from perspectives including Confucian culture, family culture, personal relationships, and local attachments. Finally, it discusses potential future directions for expanding research on Chinese culture and corporate governance. This article seeks to transcend the limitations of interpreting Chinese concepts through Western frameworks while avoiding the constraints of “Chinese exceptionalism”, aiming to build a bridge for mutual learning between civilizations in corporate governance research between China and the West, thereby contributing to the development of a theoretical system of corporate governance with Chinese characteristics.