“…Some studies have demonstrated that firms' employee hiring (Chen et al, 2014; Chen, Lim, et al, 2020), taking social responsibility (Xiu et al, 2022), tax avoidance behavior (Chen et al, 2021), and cash holdings (Chen, Ye, et al, 2020) are significantly influenced by Confucian culture. Guided by the ideas of “three principles and five rules” and “unity of righteousness and profit,” Confucian culture can significantly reduce agency problems in modern firms (Chen et al, 2019) by restraining the self‐interested behavior of insiders (Du, 2015), and influence surplus management behavior (Schmitz et al, 2019), enhance technological innovation (Yan et al, 2021), and thus promote firm growth.…”