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Can Confucianism improve ESG performance?

Author

Listed:
  • Huang, Qinghua
  • Yuan, Wei
  • Zheng, Chengsi
  • Chen, Kaiming
  • Chen, Xiding
  • Wang, Yi
  • Li, Changke

Abstract

While existing literature has demonstrated the significant impact of culture on firm decision-making, it remains unclear whether and how cultural factors influence a firm's ESG performance. In this study, we utilize Confucianism as a cultural proxy in the context of China to investigate its effects on ESG performance. We find that Confucianism plays a pivotal role in enhancing ESG performance, demonstrating a consistently positive influence across all three dimensions of ESG. This research provides compelling evidence that Confucianism serves as a valuable intellectual framework that can bolster efforts towards sustainable development.

Suggested Citation

  • Huang, Qinghua & Yuan, Wei & Zheng, Chengsi & Chen, Kaiming & Chen, Xiding & Wang, Yi & Li, Changke, 2024. "Can Confucianism improve ESG performance?," Finance Research Letters, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004926
    DOI: 10.1016/j.frl.2024.105462
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