Does Dialect Diversity Affect Enterprise Performance? Evidence from China

Chenyu Zhao and Peng Zhou

Emerging Markets Finance and Trade, 2025, vol. 61, issue 2, 516-528

Abstract: China has numerous regional dialects, which can significantly influence local economic and enterprise development. This study examined Chinese industrial enterprises (1999–2013) and found that regional dialect diversity is positively associated with enterprise performance. Promoting labor productivity through dialect diversity is the key internal mechanism for improving enterprise performance. Operating in a labor-intensive industry, having a large labor force, and belonging to a Hong Kong, Macao, Taiwan, or foreign-funded enterprise also strengthen the effect of dialect diversity on enterprise performance. This paper provides suggestions for promoting the inheritance of Chinese dialects and enhancing the positive externalities of dialect diversity.

Date: 2025
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DOI: 10.1080/1540496X.2024.2391331

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