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@article{ART001623492},
author={Kim Ji Hwan},
title={A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s},
journal={중앙사론},
issn={1229-3652},
year={2011},
number={34},
pages={7-43}

TY - JOUR
AU - Kim Ji Hwan
TI - A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s
JO - 중앙사론
PY - 2011
VL - null
IS - 34
PB - Institute for Historical Studies at Chung-Ang University
SP - 7
EP - 43
SN - 1229-3652
AB - There are two major arguments in the study of Chinese modern economic history: they are the deterioration theory and the development theory. The former argues that the principal direction of Chinese economy in those days was toward deterioration due to the China Nationalist Government and the pressure from the Imperialist Powers, putting an emphasis on deterioration and collapse in Chinese economy. Meanwhile, the latter argues that Chinese economy took a direction towards development thanks to companies' internal management innovation and the China Nationalist Government's economic policies. The First World War created opportunities for Chinese economy and companies to develop in a breakthrough fashion. Chinese companies including cotton mills were blessed with an unprecedented chance for development thanks to a boom during war. Each nation of the West had to focus on the production of military supplies and had no room for addressing Chinese market. As a result, there was a shortage of commodities in Chinese market. The shortage caused the overall prices to rise, and the rising prices created opportunities for Chinese economy and companies to grow and develop. However, such development did not last long. Chinese economy and companies that enjoyed a boom during war were faced with a recession once the war was ended. Corporate management worsened due to the rising prices of raw materials including cotton and the relative decline of product prices. Furthermore, corporation's customary practices and speculations became major causes to disturb the development of Chinese economy and companies. In addition, the China Nationalist Government set excessively high interest rates for the government bonds issued to supplement the finance. The banks were aggressive with purchasing the government bonds and stingy with investments and loans for companies. As a result, the normal growth and development of Chinese companies was set back big time. The China Nationalist Government made active efforts to promote the growth and development of Chinese companies such as forming National Economic Council and even succeeded in turning the interest of the banks from speculation to investments into companies by issuing Unification Loan and dropping its interest rate by a considerable degree. The Chinese companies also worked hard to innovate on internal management. As a result, the China Nationalist Government and Chinese companies overcame the financial panic across the world in the early 1930s and created opportunities for the growth and development of Chinese economy and companies. In 1936, Chinese economy began to witness the emergence of clear development signs such as companies recovering their production capacity and thus contributing to the growth of national economy.
KW - cotton textile industry;cotton mills;the First World War;financial panic;customary practice;unification loan;China Nationalist Government
DO -
UR -
ER -

Kim Ji Hwan. (2011). A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s. 중앙사론, 34, 7-43.

Kim Ji Hwan. 2011, "A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s", 중앙사론, no.34, pp.7-43.

Kim Ji Hwan "A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s" 중앙사론 34 pp.7-43 (2011) : 7.

Kim Ji Hwan. A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s. 2011; 34 : 7-43.

Kim Ji Hwan. "A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s" 중앙사론 no.34(2011) : 7-43.

Kim Ji Hwan. A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s. 중앙사론, 34, 7-43.

Kim Ji Hwan. A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s. 중앙사론. 2011; 34 7-43.

Kim Ji Hwan. A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s. 2011; 34 : 7-43.

Kim Ji Hwan. "A Study on the Customary Practices and Management Environments of Chinese Companies in the 1930s" 중앙사론 no.34(2011) : 7-43.