Daoist Ethics and Corporate Financial Decisions: Evidence from Indian Listed Companies

Abstract

The paper discusses the application of Daoist ethical values to corporate financial decision-making in the context of the Indian listed companies. Based on the philosophy of Wu Wei, the study examines the impact of the ethical orientation on some of the key financial variables, including capital structure, dividend policy, profitability, and risk management. The analysis of the proposed hypothesis is based on descriptive statistics, correlation analysis, and regression models using panel data of the NSE and BSE listed firms. The results indicate that companies that are more ethical, in terms of ESG scores and CSR indicators, will have a lower leverage, lesser risk, enhanced profitability, and less volatile dividend policy. The findings establish that Daoist ethics plays a huge role in shaping financial behavior that facilitates making balanced and sustainable decisions. This research paper will add to the behavioral corporate finance field by incorporating philosophical ethics in the analysis of financial performance and emphasizing the necessity of ethical governance in the new markets...