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Confucianism, Long-term Orientation and Corporate Environmental Protection Investment: Evidence from China

Year: 2024

Type: article

Abstract: Environmental protection investment is crucial to achieving an environment-friendly society. This study explores the influence and mechanism of Confucianism on corporate environmental protection investment (EPI) from a long-term-oriented perspective. Calculating the density of Confucian academies in prefecture-level cities and using data on Chinese A-share listed companies from 2010 to 2020, this study finds that Confucianism plays a considerable role in promoting corporate environmental protection investment by stimulating corporations to assume social responsibility and ameliorate corporate accounting information quality. The positivity of Confucianism shows strong robustness. Further analysis shows that when environmental regulation is weak or industry competition is fierce, Confucian cultural values have a more positive influence on EPI. This study provides empirical evidence on incentivizing corporate environmental responsibility and comprehensive green transformation of economic and social development during the sustainable development phase.

Source: Polish Journal of Environmental Studies

DOI: 10.15244/pjoes/187606

Authors: Yujing He, Xinru Lu, Yanan Wang

Institution: Hohai University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

Funders: China Postdoctoral Science Foundation, Government of Jiangsu Province, Social Science Foundation of Jiangsu Province, Fundamental Research Funds for the Central Universities

Awards: G4451681558, G6512421029