“Little tradition” and benevolence: Donation behavior of Chinese private entrepreneurs
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    Abstract:

    Traditional culture significantly affects corporate charitable donations, but the extant research predominantly focuses on the role of “big traditions” such as religious beliefs and Confucian culture. Compared with existing literature, this paper explores the “little tradition” of the zodiac year, constructing a model of entrepreneurs’ charitable donation behavior driven by psychological security motivation. Using the data of Chinese publicly listed firms, the paper finds that: 1) Private entrepreneurs significantly increase their charitable donations during their zodiac year. This result is still robust after a series of tests such as placebo and PSM, indicating that the charitable giving behavior of private entrepreneurs in China is deeply constrained by the “little tradition” of culture; 2) The effect of Confucianism and Taoism are found to complement the zodiac year, enhancing charitable donations; 3) Private entrepreneurs will not only “be lenient with others” but also “be strict with themselves” during the zodiac year. This study has theoretical implications for understanding the “positive energy” embedded in the “little tradition” of Chinese culture, as well as the volatility and non-systematic characteristics of Chinese corporate charitable donations.

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  • Online: December 01,2025
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