EconPapers    
Economics at your fingertips  
 

Does Confucian culture make firms more generous?

Deyu Liu and Kefan Wang

Research in International Business and Finance, 2025, vol. 78, issue C

Abstract: This study examines whether Confucian culture (CC) influences corporate charitable donation (CCD) from an informal institutional framework. Using 11 years of data from 3472 Chinese listed companies, the empirical analyses find that CC promotes CCD while reducing agency costs and alleviating financing constraints, which serve as important intrinsic mechanisms. Further analyses show that CC promotes CCD more significantly in regions with inadequate financial and economic development and that CC and formal institutions have a substitution relationship. In addition, female executives and executives with overseas backgrounds weaken the positive effects of CC, whereas executives with financial and academic backgrounds enhance the promotional effects of CC on CCD. This study provides empirical evidence for promoting traditional culture and offers guidance on how to encourage corporate social responsibility.

Keywords: Confucian culture; informal institutions; Charitable donation; Agency costs; Financing constraints; Executive characteristics (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531925002818
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:78:y:2025:i:c:s0275531925002818

DOI: 10.1016/j.ribaf.2025.103025

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-07-15
Handle: RePEc:eee:riibaf:v:78:y:2025:i:c:s0275531925002818