Integrity-based or profit-oriented: Confucian culture and corporate green fraud behaviour
DOI:
https://doi.org/10.15611/aoe.2026.2.05Keywords:
Confucian culture, corporate green fraud, informal institutions, culture shockAbstract
Aim: This study aimed to explore how Confucian culture, as a form of informal institution, influences the incidence of corporate green fraud in China. In the broader context of China’s transition toward a green economy, the research sheds light on the governance function of traditional cultural values in promoting environmentally responsible corporate behaviour.
Methodology: Using a panel dataset of A-share listed firms in China from 2008 to 2020, the study employs empirical analysis to examine the relationship between the prevalence of Confucian culture and corporate green fraud. It further conducts mechanism and heterogeneity analyses to identify potential transmission channels and contextual factors influencing this relationship.
Results: The results reveal that Confucian culture significantly reduces the occurrence of corporate green fraud. This relationship is mediated by enhanced green innovation capabilities, greater financial transparency, and improved quality of environmental disclosures. The impact of Confucian culture also varies across companies based on their geographic location, level of external scrutiny, and operational performance. Additionally, the presence of alternative cultural influences moderates the effectiveness of Confucian norms in curbing green fraud.
Implications and recommendations: The research findings suggest that informal institutions can mitigate corporate green fraud. Future studies should investigate the potential influence of other informal institutional factors on corporate green fraud.
Originality/value: This paper contributes to the literature by providing novel empirical evidence on the role of traditional culture in environmental governance. It highlights the value of leveraging cultural heritage in the fight against greenwashing and offers policy insights for promoting corporate environmental integrity during China’s green economic transformation.
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Copyright (c) 2026 Pengzhen Liu, Jingcheng Sun, Zhiyuan Ning, Yueting Shao
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Accepted 2026-03-08
Published 2026-08-20
