Long-term oriented culture, performance pressure and corporate innovation evidence from China

This paper extracts cultural elements of long-term orientation from Chinese listed firms' annual reports, then argues and testifies whether long-term orientation can help firms to hang onto risky decisions especially as innovation, when firms are under performance pressure. There are three main conclusions. First, we report that the higher the degree of long-term oriented culture a firm has, the stronger innovation capability the firm shows. Second, we find that long-term oriented culture can improve employee’s educational qualifications to promote corporate innovation, as well as improve the corporate internal control to promote innovation. Third, when firms are subjected to internal or external performance pressure in their business process, higher long-term oriented culture will make firms more innovative.