Confucian culture and corporate environmental management: The role of innovation, financing constraints and managerial myopia

This paper explores the impact of Confucian culture on the environmental management practices of firms, utilizing data from A-share listed companies in China from 2009 to 2022. The study reveals several significant findings: (1) Firms in regions with a stronger presence of Confucian culture are more...

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Bibliographic Details
Published in:Research in international business and finance 2025-01, Vol.73, p.102585, Article 102585
Main Authors: Min Du, Anna, Lu, Mengyuan, Zhang, Yiyan, Li, Zhongyuan
Format: Article
Language:English
Subjects:
Confucian culture
Environmental management
Financing constraints
Innovation
Managerial myopia
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Summary:This paper explores the impact of Confucian culture on the environmental management practices of firms, utilizing data from A-share listed companies in China from 2009 to 2022. The study reveals several significant findings: (1) Firms in regions with a stronger presence of Confucian culture are more likely to adopt environmentally responsible management practices; (2) Confucian culture enhances firms' environmental management through three channels: promoting innovation, easing financing constraints, and reducing managerial myopia, with a particular emphasis on alleviating financing constraints; (3) Regional environmental regulations mitigate the positive influence of Confucian culture on firms' environmental management practices. This study contributes to the literature by elucidating the determinants of corporate environmental management and emphasizing the critical role of cultural factors, particularly in overcoming financial barriers, in corporate decision-making. [Display omitted] •Confucian culture promotes firms' environmental management.•Innovation performance, financial constraints, and managerial myopia serve as channels.•Environmental regulation has mitigated the influence.
ISSN:0275-5319
DOI:10.1016/j.ribaf.2024.102585