IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v94y2024ics1059056024003708.html
   My bibliography  Save this article

Confucian culture and corporate default risk: Assessing the governance influence of traditional culture

Author

Listed:
  • Zhang, Ning
  • Bo, Lan
  • Wang, Xuanqiao

Abstract

Given the prevalence of debt default incidents, this study investigates the influence of Confucian culture on corporate default risk in China. The results underscore Confucian culture's governance impact on corporate default risk. Channel analysis reveals that Confucian culture mitigates the risk of debt default by raising cash holdings and fostering a trustworthy business environment. Furthermore, the legal environment is found to positively moderate the impact of Confucian culture on debt default risk, whereas foreign cultural shocks and local corruption exert a negative influence. These findings not only enrich the literature on mitigating corporate default risk and promoting economic growth but also emphasize the enduring significance of China's revered traditional culture.

Suggested Citation

  • Zhang, Ning & Bo, Lan & Wang, Xuanqiao, 2024. "Confucian culture and corporate default risk: Assessing the governance influence of traditional culture," International Review of Economics & Finance, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:reveco:v:94:y:2024:i:c:s1059056024003708
    DOI: 10.1016/j.iref.2024.103378
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056024003708
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2024.103378?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Confucian culture; Corporate default risk; Informal institutions;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:94:y:2024:i:c:s1059056024003708. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.