RESEARCH ARTICLE
A cross-cultural study of ESG impact on corporate performance and equity
Lei Wu,
Zhenkai Zhai,
Yongbin Lv,
Lei Wu
School of Public Finance and Taxation, Zhongnan University of Economics and Law, Wuhan, China
Search for more papers by this authorZhenkai Zhai
School of Public Finance and Taxation, Zhongnan University of Economics and Law, Wuhan, China
Search for more papers by this authorCorresponding Author
Yongbin Lv
School of Finance, Zhongnan University of Economics and Law, Wuhan, China
Correspondence
Yongbin Lv, School of Finance, Zhongnan University of Economics and Law, 182 Nanhu Avenue, 430073 Wuhan, China.
Email: [email protected]
Search for more papers by this authorLei Wu,
Zhenkai Zhai,
Yongbin Lv,
Lei Wu
School of Public Finance and Taxation, Zhongnan University of Economics and Law, Wuhan, China
Search for more papers by this authorZhenkai Zhai
School of Public Finance and Taxation, Zhongnan University of Economics and Law, Wuhan, China
Search for more papers by this authorCorresponding Author
Yongbin Lv
School of Finance, Zhongnan University of Economics and Law, Wuhan, China
Correspondence
Yongbin Lv, School of Finance, Zhongnan University of Economics and Law, 182 Nanhu Avenue, 430073 Wuhan, China.
Email: [email protected]
Search for more papers by this authorFirst published: 29 September 2024
Abstract
Utilising A-share corporate data and quantitative and empirical methodologies, this study examines the potential influence of environmental, social, and governance (ESG) and Confucianism on two critical dimensions of corporate governance: corporate profitability and equity in compensation. The findings indicate that while ESG practices contribute to enhanced profitability, they are also associated with an increased disparity in fair pay, indicating more pronounced salary variations. Significantly, the incorporation of Confucian principles appears to moderate these disparities, aligning ESG efforts more closely with principles of equitable compensation. This research analyses the interplay between contemporary sustainability initiatives and traditional cultural norms, offering valuable insights for the formulation of balanced corporate management strategies.
Open Research
DATA AVAILABILITY STATEMENT
The data that support the findings of this study are available from the corresponding author upon reasonable request.
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