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Does Confucian culture make firms more generous?

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  • Liu, Deyu
  • Wang, Kefan

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.

Suggested Citation

  • Liu, Deyu & Wang, Kefan, 2025. "Does Confucian culture make firms more generous?," Research in International Business and Finance, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:riibaf:v:78:y:2025:i:c:s0275531925002818
    DOI: 10.1016/j.ribaf.2025.103025
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