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Study on corporate ESG performance from the perspective of Chinese red culture

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  • Junhong Shen
  • Deen Wu
  • Jianqiong Wang

Abstract

This study examines the impact of red culture on corporate environmental, social, and governance (ESG) performance based on hand-collected data on red culture. The results showed a significant positive relationship between red culture and ESG. The channel analysis shows that red culture enhances corporate ESG performance by strengthening the quality of corporate internal controls and the moral cultivation of executives. In addition, the positive effect of red culture on corporate ESG performance is more pronounced in areas with state-owned enterprises, weaker external cultural shocks, and poorer market environments. Overall, our study revealed the soft governance role of red culture.

Suggested Citation

  • Junhong Shen & Deen Wu & Jianqiong Wang, 2025. "Study on corporate ESG performance from the perspective of Chinese red culture," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 32(4), pages 727-750, July.
    • Handle: RePEc:taf:raaexx:v:32:y:2025:i:4:p:727-750
    DOI: 10.1080/16081625.2024.2371307
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