 Minority shareholder activism and corporate social responsibilityShen Xu, Bichao Yin and Chunjie Lou Economic Modelling, 2022, vol. 116, issue C Abstract: China has many minority shareholders, but it is still unclear whether they actively influence corporate social responsibility (CSR) decisions to protect their own benefits. However, previous research mainly focuses on the effect of institutional investors on CSR. Based on big data from China's influential stock forums, we developed a novel measure of minority shareholder activism (MSA) to capture the time and effort invested by minority shareholders. Using firm-level data from China during 2010–2018 and the novel measure, we find that MSA improves CSR performance. Furthermore, this effect of MSA on CSR weakens in polluting industries after implementing the new environmental protection law, implying that MSA improves CSR through monitoring mechanisms, particularly in an imperfect legal system. Cross-sectionally, this main effect is influenced by sentiment, financial constraints, ownership, analyst coverage, transparency, and public pressure. Our findings suggest that MSA can affect corporate decision-making and generate social benefits. Keywords: Minority shareholder activism; Corporate social responsibility; China (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:ecmode:v:116:y:2022:i:c:s0264999322002826 DOI: 10.1016/j.econmod.2022.106045 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.