Can Confucianism improve ESG performance?

Qinghua Huang, Wei Yuan, Chengsi Zheng, Kaiming Chen, Xiding Chen, Yi Wang and Changke Li

Finance Research Letters, 2024, vol. 64, issue C

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.

Keywords: Confucianism; ESG; Informal institution (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004926

DOI: 10.1016/j.frl.2024.105462

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