Corporate Finance Perspective From The Confucian Culture

Enron scandal, which happened in November in 2001 and followed by a series of accounting illegal trials such as "World telecommunication", "Xerox", "Merck", has led to the slump of New York Stock market, making stock owners in US. and even all over the world loss the confidence in investment. As an integral part of the global capital market, China failed to escape this calamity in case of its "inadequate natural endowment". "Qiong-ming-yuan" and "De-long" incidents has greatly dampen the investment passion of mass Chinese stock owners, furthermore harming the health and growth of China's economy development. In the face of those fraud incidents that emerge in an endless stream, economic management families from all over the world have carried on some discussions in terms of economic management, with putting forward several creative solutions for scandals on enterprises' financing practice. However, it is far from enough and complete for merely explaining this kind of fraud practice in terms of economic management. Therefore, this thesis regards those fraud financing practices such as "Enron scandal" as a phenomenon, in terms of China's Confucian culture values. That is to say, fraud finance practice is not an incident, even not an isolated event, but closely related with the various functions the enterprise's financing practice plays.The thesis then continues to prove the great influence of culture changes on enterprises' financing practice. Suppose that culture is the internal varies of financing practice, it will inevitably have impact on its practice. In terms of that, it will proves it further that culture is the internal varies by comparing the very different financing practice models between classic enterprises and modern ones. At last, the impact of regional disparity in culture on enterprise's financing practice will be proved. By analyzing the various culture modes from different regions, the intensity that financing practice will be focus on beneficiaries, and the short-term and long-term values of financing practice, culture is really the internal varies of enterprises' financing practice, very closely related with it.In the second section of this thesis, it explains the close relationship between Confucian culture and modern enterprises' financing practice. On the basis of the conclusion that culture is the internal varies of financing practice, it will continue to prove that Confusion culture has great impact on enterprises' financing practice. First of all, the essence of Confucian culture will be clarified. That is, Wholism, Justice, and Benevolence. Secondly, it will prove that Confucian culture revives in market economy, while whether the market economy needs such culture or not shall be analyzed in deep. By rational analysis of it, market economy has been found to be revised by the soul of Confucian culture, which will be proved later.Finally, the further demonstration as to the influence of Confucian culture on enterprises' financing practice modes shall be done. Based on that Confucian culture can revise the market economy, "tool reasoning" issue can be analyzed and be proved that it is also revised by Confucian culture. Therefore, the characteristic of enterprises' financing...