Corporate Social Responsibility Risk and Firm Performance: A Network Perspective

Jiaqi Luo, Mingxiao Bi and Dandan Jia
Additional contact information
Jiaqi Luo: Collaborative Innovation Center for Transport Studies, Dalian Maritime University, Dalian 116026, China
Mingxiao Bi: Collaborative Innovation Center for Transport Studies, Dalian Maritime University, Dalian 116026, China
Dandan Jia: Collaborative Innovation Center for Transport Studies, Dalian Maritime University, Dalian 116026, China

IJFS, 2022, vol. 10, issue 2, 1-20

Abstract: This study explored how corporate social responsibility (CSR) risk, social networks, and firm performance interacted in light of resource dependence theory and information asymmetry theory to bridge the literature gap between CSR risk and firm performance under the conditions of China’s network. We used data from Shanghai and Shenzhen A-share listed firms in China from 2010 to 2019 to conduct a social network analysis and random-effects GLS regression analysis. The study revealed the following: (1) CSR risk hurts financial performance, while structural holes and network density attenuate this effect; (2) CSR risk positively impacts capital performance, which is amplified by closeness centrality; (3) CSR risk harms innovation performance, while betweenness centrality and network density mitigate this effect. Despite CSR risk bringing short-term benefits, this effect is not sustained. Generally, CSR risks are more detrimental to firms than beneficial. In this study, we strengthen the basis of the research on CSR risk and firm performance, along with research on social networks, advising firms to avoid CSR risks and utilize their networks to mitigate such risks and achieve a better performance.

Keywords: CSR risk; corporate social irresponsibility (CSI); firm performance; social network analysis; resource dependence theory; information asymmetry theory; China (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/2227-7072/10/2/40/pdf (application/pdf)
https://www.mdpi.com/2227-7072/10/2/40/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijfss:v:10:y:2022:i:2:p:40-:d:829904

Access Statistics for this article

IJFS is currently edited by Ms. Hannah Lu

More articles in IJFS from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().