Cultural diversity and green innovation: Evidence from China

This paper investigates whether and how cultural diversity influences corporate green innovation. By using distinct sub-Chinese dialects to measure cultural diversity, we find that regional cultural diversity significantly decreases corporate green innovation, and this result remains robust after conducting various tests to ensure the reliability of the findings. Using path analysis, we document that the path from cultural diversity to corporate green innovation is mediated by social trust. Additionally, further analysis indicates that such negative effects can be moderated by green finance support, higher government environmental attention, and stronger corporate social responsibility.