Confucian Culture and Corporate Environmental Management: The Role of Innovation, Financing Constraints and Managerial Myopia

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.

Citation

Min Du, A., Lu, M., Zhang, Y., & Li, Z. (2025). Confucian Culture and Corporate Environmental Management: The Role of Innovation, Financing Constraints and Managerial Myopia. Research in International Business and Finance, 73(Part A), Article 102585. https://doi.org/10.1016/j.ribaf.2024.102585

• Journal Article Type: Article
• Acceptance Date: Sep 12, 2024
• Online Publication Date: Sep 14, 2024
• Publication Date: 2025-01
• Deposit Date: Jan 29, 2025
• Journal: Research in International Business and Finance
• Print ISSN: 0275-5319
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 73
• Issue: Part A
• Article Number: 102585
• DOI: https://doi.org/10.1016/j.ribaf.2024.102585