Abstract
While China’s economic development has made tremendous progress, it has also caused serious environmental pollution problems. This paper uses the date of the Chinese Private Enterprise Survey (CPES) to empirically investigate the impact of Confucianism on corporate environmental investment and its internal mechanism. The results show that: (1) Confucianism plays a significant role in corporate environmental investment. (2) In the areas where environmental regulation is relatively weak, Confucianism has a more significant effect on promoting corporate environmental investment. (3) The positive influence of Confucianism on corporate environmental investment is more obvious in heavy polluting industries. This paper’s conclusions deepen the theoretical cognition of the economic consequences of Confucianism and enrich the relevant literature on the subject of Confucianism. At the same time, this paper also expands the understanding of the determinants of corporate environmental investment from the perspective of the informal institution.
Highlights
Sustainability is an important part of global governance
Our study finds that when environmental regulation is weak, Confucianism has a stronger positive impact on corporate environmental investment
Our study finds that the influence of Confucianism on corporate environmental investment is more pronounced in heavily polluting industries, which means that industry type moderates the relationship between Confucianism and corporate environmental investment
Summary
Sustainability is an important part of global governance. As the main force driving economic development, enterprises are duty-bound to take the initiative to assume social responsibility. GDP per capita attenuates the negative association between Confucianism and board gender diversity These studies provide us with ideas for further exploration of the relationship between Confucianism and corporate decision making. We use the date of the Chinese Private Enterprise Survey (CPES) from 2010 to 2014 as the research sample to explore the relationship between Confucianism and corporate environmental investment. Our study finds that when environmental regulation is weak, Confucianism has a stronger positive impact on corporate environmental investment It proves that informal institutions can assist formal institutions to regulate enterprises’ behaviors under specific conditions, which echoes and deepens the views of existing literatures [14,15,16,17]. We put forward the shortcomings of this study, and point out the future research direction
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
