CSR and Firm Value: Evidence from China

By Yuanyuan Hu, Shouming Chen, Yuexin Shao, Suxia Gao. Sustainability, 2018

111 citations recorded by the source corpus.

This study attempts to investigate the influence of corporate social responsibility (CSR) on firm value. Drawing upon stakeholder theory and a resource-based view, we argue that corporate social responsibility is expected to positively affect firm value because it helps firms gain positive stakeholder responses. Based on longitudinal data of Chinese manufacturing firms listed at Shanghai and Shenzhen Stock Exchange between 2010 and 2015, we use multiple linear regression to find that corporate social responsibility has a positive relationship with firm value and that the relationship between CSR and firm value is weakened for firms with higher advertising intensity, as CSR by these firms gains negative stakeholder responses. State-owned firms were shown to benefit more from CSR, as CSR by these firms gains positive stakeholder responses for such firms.

Subfields: Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/710fe92d6ced8dbaa24ebad4eef6cbb0a7273ba2

How researchers see this paper

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

In Marketing

1. A. Mobarek
2. N. Roni
3. Lei Ruan
4. Heng Liu
5. Nisar Ahmad

In Strategy and Management

1. A. Mobarek
2. N. Roni
3. Lei Ruan
4. Nils Engelhardt
5. Jens Ekkenga
6. Peter N. Posch
7. Heng Liu
8. Nisar Ahmad

Citations in the corpus

• Environmental, Social, Governance Activities and Firm Performance: Evidence from China (2021, background): “Therefore, usually state-owned enterprises conduct ESG activities at an earlier stage, whose quality of ESG information disclosure is higher and effects of signal mechanism are better, meaning that their ESG activities are more likely to promote the gradual improvement of firm performance [70,71].”
• ESG Ratings and Stock Performance during the COVID-19 Crisis (2021, background): “shareholder theory suggests that CSR is solely a donation from a firm’s shareholders to stakeholders [31].”
• Revisiting the impact of ESG on financial performance of FTSE350 UK firms: Static and dynamic panel data analysis (2021, background): “…to net economies of scale in manufacturing operations (Thompson, 1967), greater control over external stakeholders and resources (Aldrich & Pfeffer, 1976 & Pfeffer & Salancik, 1978), and increases promotional opportunities resulting in the attraction and retention of employees (Williamson, 1975).”