CSR and Firm Value: Evidence from China

Yuanyuan Hu, Shouming Chen, Yuexin Shao and Su Gao
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Yuanyuan Hu: School of Economics and Management, Tongji University, Shanghai 200092, China
Shouming Chen: School of Economics and Management, Tongji University, Shanghai 200092, China
Yuexin Shao: School of Economics and Management, Tongji University, Shanghai 200092, China
Su Gao: School of Management, Fujian University of Technology, Fuzhou 350118, China

Sustainability, 2018, vol. 10, issue 12, 1-18

Abstract: 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.

Keywords: corporate social responsibility; firm value; advertising intensity; state-owned (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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