Clan culture and corporate environmental performance: Evidence from China

Based on the Chinese context and institutional theory, we investigated how clan culture influences corporate environmental performance. Building upon existing research, we explored whether clan culture, as a potent indigenous force in China, regulates corporate environmental behavior. The findings suggest that clan culture significantly improves corporate environmental performance, while environmental regulations from the government and internal green management practices weaken this effect. After controlling for endogeneity issues and conducting robustness checks, these conclusions hold true. Further examination reveals that clan culture primarily functions through shaping moral environments and enhancing environmental awareness among top executives. Heterogeneity analysis indicates that this effect is more pronounced in companies where top executives lack green experiences and environmental disclosure is poorer. Clan culture also significantly improves corporate ESG environmental assessments and reduces corporate carbon emissions levels but negatively impacts corporate green innovation activities.