David W. Pankenier is recognized for his research into the origins of Chinese religion and philosophy, particularly his theories linking ancient Chinese cosmology and religious concepts to astronomical observations. His work explores the evolution of religious thought from early animistic and shamanic traditions through the Shang and Zhou dynasties, highlighting the development of ancestor worship, the concept of 'Tian' (Heaven), and the Mandate of Heaven.

Pankenier's scholarship delves into the textual and symbolic evidence to reconstruct the theological frameworks of these early periods. He examines how concepts like 'Di' (deities) and 'Shangdi' (highest deity) were understood, and how astronomical patterns, especially those in the northern sky, may have influenced early Chinese conceptions of the divine and royal authority. His contributions are significant in understanding the foundational ideas that shaped later Chinese philosophical and religious traditions, including Taoism and Confucianism.

David W. Pankenier's research posits a strong connection between ancient Chinese astronomical observations and the development of early religious and philosophical concepts. He, along with John C. Didier, suggests that the forms of ancient Chinese characters for 'Di' (deities) and 'Tian' (Heaven) may be derived from patterns of stars in the northern sky. Pankenier specifically theorizes that these characters could represent constellations like the Big Dipper and Ursa Minor. This perspective suggests that celestial phenomena played a crucial role in shaping early Chinese cosmology, influencing ideas about supreme deities, divinity, and the legitimacy of royal power, mirroring similar cosmological interpretations found in other ancient cultures.

Pankenier's work traces the evolution of religious thought from prehistoric animistic, shamanic, and totemic worldviews to the more systematized traditions of the Shang and Zhou dynasties. He highlights the Shang dynasty's worship of ancestors and god-kings, viewing the universe as self-generating rather than divinely created. The concept of 'Shangdi' as the highest deity, identified with the dragon and cosmic power, is central. The subsequent Zhou dynasty shifted focus to a more universal 'Tian,' emphasizing moral power and the Mandate of Heaven as the basis for legitimate rule, rather than divine right derived from ancestry. This transition reflects a significant evolution in understanding the relationship between the divine, rulers, and the populace.

During the latter Zhou dynasty and the Warring States period, Pankenier's analysis indicates a 'diffuse' understanding of 'Tian's' power, with various rulers claiming divine legitimacy. As the Zhou ritual system waned, 'wild' or unofficial traditions emerged, attempting to access Tian's will outside the established system. This period of spiritual questioning and challenges to legitimacy spurred the development of the 'Hundred Schools of Thought.' Pankenier's research provides context for how thinkers like Confucius sought to reformulate traditional beliefs, emphasizing self-cultivation, human agency, and ethical interpretations of religion to restore social harmony amidst moral decline and the vulgarization of rituals.