Funding green activities: The national cultural profiles of high green bond issuance countries

Scholars have informed important findings related to the relationships between Hofstede's cultural dimensions and various green financing activities. Yet, we observe a lack of research that investigates the complex interdependency between the six key cultural dimensions of a society (i.e., individualism, uncertainty avoidance, long-term orientation, power distance, masculinity, indulgence) and how they jointly drive green bond issuance. In this paper, we employ Fuzzy-set Qualitative Comparative Analysis (FsQCA) to examine the link between cultural dimensions and green bond issuance across 64 countries. We contribute to offering novel insights into the three cultural configurations or profiles that are associated with high green bond issuance. Our work challenges existing research on the national culture and green practice relationship, such that we observe no best condition for any single Hofstede's cultural value. Instead, depending on the condition of other values, each cultural value/dimension can be high, low, or not play a major role in predicting high green bond issuance. Finally, our paper represents a methodological contribution to culture and green practice literature. We discuss our study's practical and theoretical implications in this line of research.