This paper introduces the perspective of red culture to examine its governance effect on corporate excess leverage. We robustly find that red culture significantly curbs corporate excess leverage. The primary mechanisms are the enhancement of corporate social responsibility and the strengthening of organizational discipline. Furthermore, the effect is more pronounced in state-owned enterprises and firms located in regions with a higher degree of openness. We provide a new perspective on the role of cultural governance in corporate financial management and offers practical guidance for both corporate management and policy-making.

中文翻译：

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文化治理的力量：企业过度杠杆的红药方


本文从红色文化的角度出发，考察了红色文化对企业过度杠杆的治理效应。我们稳健地发现，红色文化显著抑制了企业过度杠杆。主要机制是增强企业社会责任和加强组织纪律。此外，这种影响在国有企业和位于开放程度较高地区的企业中更为明显。我们为文化治理在公司财务管理中的作用提供了新的视角，并为公司管理和政策制定提供了实用指导。