The relationship between CSR and performance: Evidence in China

By Erin H. C. Kao, Chih-Chuan Yeh, Li-Hsun Wang, Hung-Gay Fung. Pacific-Basin Finance Journal, 2018

280 citations recorded by the source corpus.

Abstract This study uses a system of simultaneous equations to investigate various hypotheses on the relationship between corporate social responsibility (CSR) and firm performance for state-owned enterprises (SOEs) and non-SOEs in China. The results show variations in market response to CSR engagement by firm ownership type. That is, the market responds favorably to CSR by market-oriented non-SOEs but neutrally to CSR by SOEs with substantial agency costs. The Chinese firms are able to link their CSR activities to firm performance over time, likely recognizing the long-term benefits of CSR. Our study demonstrates the important role of ownership in the dynamic CSR-performance relationship.

Subfields: Accounting, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/4696772e65315a3a0ac75b28631bb45195284805

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Huijie Cui
2. Wen Wen
3. Yongjia Lin
4. Xiaolan Fu
5. Yun Ke
6. X. Fu
7. Yong Tan

In Strategy and Management

1. Wen Wen
2. Yongjia Lin
3. Xiaolan Fu
4. X. Fu
5. Yong Tan

Citations in the corpus

• Varieties in state capitalism and corporate innovation: Evidence from an emerging economy (2021, background): “For example, SASAC-SC, the controlling owner of central SOEs, released in 2008 the opinion on social responsibility implementation for central SOEs (Li et al., 2013; Kao et al., 2018).”
• Directors with foreign experience and corporate tax avoidance (2020, methodology): “Following previous literature (e.g., Gong et al., 2018; Jin et al., 2017; Kao et al., 2018; Lau et al., 2016; Wang and Li, 2016; Zhang and Guo, 2018), we construct three proxies for CSR performance.”