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Cultural diversity and green innovation: Evidence from China

Author

Listed:
  • Wang, Zehao
  • Sun, Xiaowei
  • Li, Wentao

Abstract

This paper investigates whether and how cultural diversity influences corporate green innovation. By using distinct sub-Chinese dialects to measure cultural diversity, we find that regional cultural diversity significantly decreases corporate green innovation, and this result remains robust after conducting various tests to ensure the reliability of the findings. Using path analysis, we document that the path from cultural diversity to corporate green innovation is mediated by social trust. Additionally, further analysis indicates that such negative effects can be moderated by green finance support, higher government environmental attention, and stronger corporate social responsibility.

Suggested Citation

  • Wang, Zehao & Sun, Xiaowei & Li, Wentao, 2023. "Cultural diversity and green innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323007511
    DOI: 10.1016/j.frl.2023.104379
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    References listed on IDEAS

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    Cited by:

    1. He, Na & Yang, Junjie & Ren, Jiahui, 2024. "Pollution and green innovation: Evidence from CEOs’ early-life experience," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 65-79.
    2. Tian, Ye & Chen, Songbo & Dai, Li, 2024. "How climate risk drives corporate green innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 59(C).
    3. Zhang, Ming & Wei, Xuejiao, 2024. "Resource efficiency, cultural industry, and green economic growth: A synergistic approach," Resources Policy, Elsevier, vol. 90(C).
    4. Li, Wentao & Li, Xue & Peng, Lanying & Ning, Chong, 2024. "Silent actions: Digital transformation in private enterprises with state equity participation," Finance Research Letters, Elsevier, vol. 65(C).

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    More about this item

    Keywords

    Informal institution; Cultural diversity; Green innovation;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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