Establishing yourself with faith: Confucian culture and corporate commercial credit
Abstracts: This study examines the impact of Confucian culture as an informal institution on the commercial credit financing of firms. Using A-share listed companies in Shanghai and Shenzhen, China, from 2006 to 2019, it finds that Confucian culture facilitates firms' access to business credit...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-10-01
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| Series: | Borsa Istanbul Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S221484502300087X |
| _version_ | 1827780591190278144 |
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| author | Dianlong Wei Chunhua Luo Jinjing Lu Yonge Li |
| author_facet | Dianlong Wei Chunhua Luo Jinjing Lu Yonge Li |
| author_sort | Dianlong Wei |
| collection | DOAJ |
| description | Abstracts: This study examines the impact of Confucian culture as an informal institution on the commercial credit financing of firms. Using A-share listed companies in Shanghai and Shenzhen, China, from 2006 to 2019, it finds that Confucian culture facilitates firms' access to business credit financing. In regions where Confucian values are strong, practicing the principles of “righteousness and profit” and “faith and righteousness,” for example, can help build a positive business reputation. This reputation improves stakeholder support and enables easier acquisition of business credit compared to firms in other areas. The study identifies three mechanisms by which Confucianism improves credit financing: enhancing internal controls, reducing corporate violations, and mitigating managers’ short-sightedness. This study adds to our understanding of corporate credit financing by delving into the role of Confucianism in traditional Chinese culture. It also provides empirical evidence for credit financing behavior in the Chinese context. |
| first_indexed | 2024-03-11T15:06:35Z |
| format | Article |
| id | doaj.art-249d413f50f34c60b1b23248ff042b49 |
| institution | Directory Open Access Journal |
| issn | 2214-8450 |
| language | English |
| last_indexed | 2024-03-11T15:06:35Z |
| publishDate | 2023-10-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj.art-249d413f50f34c60b1b23248ff042b492023-10-30T06:02:33ZengElsevierBorsa Istanbul Review2214-84502023-10-0123S58S73Establishing yourself with faith: Confucian culture and corporate commercial creditDianlong Wei0Chunhua Luo1Jinjing Lu2Yonge Li3School of Accounting, Hangzhou Dianzi University, Hangzhou, Zhejiang, ChinaSchool of Accounting, Hangzhou Dianzi University, Hangzhou, Zhejiang, ChinaSchool of Urban Economics and Public Administration, Capital University of Economics and Business, Beijing, China; Corresponding author. School of Urban Economics and Public Administration, Capital University of Economics and Business, No. 121, Huaxiang Junction, Fengtai District, Beijing, 100070, China.School of Faculty of Humanity, Binzhou Polytechnic, Shandong, ChinaAbstracts: This study examines the impact of Confucian culture as an informal institution on the commercial credit financing of firms. Using A-share listed companies in Shanghai and Shenzhen, China, from 2006 to 2019, it finds that Confucian culture facilitates firms' access to business credit financing. In regions where Confucian values are strong, practicing the principles of “righteousness and profit” and “faith and righteousness,” for example, can help build a positive business reputation. This reputation improves stakeholder support and enables easier acquisition of business credit compared to firms in other areas. The study identifies three mechanisms by which Confucianism improves credit financing: enhancing internal controls, reducing corporate violations, and mitigating managers’ short-sightedness. This study adds to our understanding of corporate credit financing by delving into the role of Confucianism in traditional Chinese culture. It also provides empirical evidence for credit financing behavior in the Chinese context.http://www.sciencedirect.com/science/article/pii/S221484502300087XConfucian cultureCommercial creditInformal system |
| spellingShingle | Dianlong Wei Chunhua Luo Jinjing Lu Yonge Li Establishing yourself with faith: Confucian culture and corporate commercial credit Borsa Istanbul Review Confucian culture Commercial credit Informal system |
| title | Establishing yourself with faith: Confucian culture and corporate commercial credit |
| title_full | Establishing yourself with faith: Confucian culture and corporate commercial credit |
| title_fullStr | Establishing yourself with faith: Confucian culture and corporate commercial credit |
| title_full_unstemmed | Establishing yourself with faith: Confucian culture and corporate commercial credit |
| title_short | Establishing yourself with faith: Confucian culture and corporate commercial credit |
| title_sort | establishing yourself with faith confucian culture and corporate commercial credit |
| topic | Confucian culture Commercial credit Informal system |
| url | http://www.sciencedirect.com/science/article/pii/S221484502300087X |
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