Chinese traditional values matter in regulating China's company directors : findings from an empirical research

This article is financed by the General Research Fund of the HK Government over two years. It is a follow-up article from an earlier article published in 2010. The final survey results from HK and PRC respondents suggest that traditional cultural values are essential ingredients in decisionmaking processes among company directors. Another aim of the survey was to gauge the level of legal awareness among respondents. This leads to two interrelated issues: the first is "does culture matter?" and the second is "what do the Chinese think of the law?" These are important issues to be considered as good corporate governance is deemed to be quintessential to investors' expectations and valuation of a company. However, the findings of this research call for urgent attention to rethink such conventional wisdom in the PRC market.