 Exporting corporate social responsibility: Evidence from foreign bank entryYanyan Shen and Xiaojia Zheng The British Accounting Review, 2024, vol. 56, issue 5 Abstract: This paper examines the effect of foreign bank entry on local firms' social performance. We find that foreign bank entry is associated with better performance of local firms in regard to corporate social responsibility (CSR). The effect is more pronounced when firms face less favorable financial conditions and when corporate governance is weaker. Meanwhile, the role of foreign banks in promoting CSR is stronger in firms subject to environmental concerns but weaker in firms with foreign institutional investors or CEOs with overseas experiences in place. Further analyses show that foreign bank entry significantly releases firms' financial constraints, reduces corporate risk, and improves CSR awareness, further verifying the three channels of how foreign banks increase firms’ CSR performance. These findings provide valuable insights into the consequence of financial liberalization by highlighting the important role of foreign banks as intermediaries in facilitating CSR practice globally. Keywords: Foreign bank entry; Corporate social responsibility; Financial constraints; Corporate risk; CSR awareness (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:56:y:2024:i:5:s0890838923000835 DOI: 10.1016/j.bar.2023.101236 Access Statistics for this article The British Accounting Review is currently edited by Nathan Lael Joseph and Alan Lowe More articles in The British Accounting Review from Elsevier |
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