How does Confucianism influence green innovation? Evidence from China

Abstract

This study develops a model to explore the relationship between Confucianism and green innovation and the moderating effects of CEO overseas experience, female CEOs, and institutional fragility on this relationship. Based on data from 11,430 observations across 2,812 Chinese listed firms for the 2014–2019 period, we find that Confucianism has a positive impact on a firm’s green innovation. However, this effect is weakened by CEO overseas experience, female CEOs, and institutional fragility. Our study offers novel insights into how informal institutions, such as Confucianism, affect a firm’s green innovation. In addition, it provides a comprehensive framework for the theoretical understanding of the influence of Confucianism on green innovation by revealing the moderating roles of CEOs’ characteristics and institutional environment.

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