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Confucian culture and corporate environmental management: The role of innovation, financing constraints and managerial myopia

Author

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  • Min Du, Anna
  • Lu, Mengyuan
  • Zhang, Yiyan
  • Li, Zhongyuan

Abstract

This paper explores the impact of Confucian culture on the environmental management practices of firms, utilizing data from A-share listed companies in China from 2009 to 2022. The study reveals several significant findings: (1) Firms in regions with a stronger presence of Confucian culture are more likely to adopt environmentally responsible management practices; (2) Confucian culture enhances firms' environmental management through three channels: promoting innovation, easing financing constraints, and reducing managerial myopia, with a particular emphasis on alleviating financing constraints; (3) Regional environmental regulations mitigate the positive influence of Confucian culture on firms' environmental management practices. This study contributes to the literature by elucidating the determinants of corporate environmental management and emphasizing the critical role of cultural factors, particularly in overcoming financial barriers, in corporate decision-making.

Suggested Citation

  • Min Du, Anna & Lu, Mengyuan & Zhang, Yiyan & Li, Zhongyuan, 2025. "Confucian culture and corporate environmental management: The role of innovation, financing constraints and managerial myopia," Research in International Business and Finance, Elsevier, vol. 73(PA).
    • Handle: RePEc:eee:riibaf:v:73:y:2025:i:pa:s0275531924003787
    DOI: 10.1016/j.ribaf.2024.102585
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    6. Kuai, Yicheng & Guo, Mengmeng, 2026. "Can social capital combat corporate greenwashing? evidence from China," Finance Research Letters, Elsevier, vol. 91(C).
    7. Xin, Baogui & Wang, Yuanrui & Peng, Wei & Tan, Hui & Kwon, Jiwon, 2026. "Advancing energy justice through ESG: The role of confucian culture and digital finance," Research in International Business and Finance, Elsevier, vol. 83(C).
    8. Huang, Chenghao & Zhang, Li & Liu, Wenqi, 2025. "Do north–south cultural differences affect share repurchases?—Evidence from China," Research in International Business and Finance, Elsevier, vol. 80(C).
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    12. Srivastav, Shashank Prakash & Kannadhasan, M., 2025. "Environment and Energy: Does climate risk shape the energy consumption behavior of firms?," Energy Economics, Elsevier, vol. 148(C).
    13. Qi’an Zhong, 2026. "Strategic differences and corporate environmental disclosure quality: empirical evidence from heavily polluting industries in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-12, December.
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    19. Li, Hongquan & Yang, Yang, 2025. "Can proximity to World Heritage Sites reduce corporate misconduct? Evidence from Chinese listed companies," Research in International Business and Finance, Elsevier, vol. 77(PB).

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