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Traditional clans and modern corporate ESG: Evidence from China

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  • Ma, Qiucen
  • Chen, Zhiyuan
  • Ding, Congming

Abstract

This study examines how China's traditional clans affect the environmental, social, and governance (ESG) performance of modern firms. Employing prefecture-level genealogical data and data on A-share listed firms from 2009 to 2022, we find that firms located in regions with strong clan influence tend to exhibit superior ESG performance, particularly in the environmental dimension. This effect is primarily driven by the cultural influence and organizational functions of clans. We also demonstrate that the influence of clans is more significant for firms and regions where formal regulatory oversight is weaker. Our research contributes to the literature by introducing an informal institutional perspective on the determinants of ESG performance.

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  • Ma, Qiucen & Chen, Zhiyuan & Ding, Congming, 2026. "Traditional clans and modern corporate ESG: Evidence from China," Economic Modelling, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:ecmode:v:157:y:2026:i:c:s0264999326000490
    DOI: 10.1016/j.econmod.2026.107520
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