The Effect of Listing Period on Corporate Social Responsibility: Evidence from Korea

Nam Chul Jung and Hyun Ah Kim
Additional contact information
Nam Chul Jung: School of Business Administration, Hongik University, 94 Wausan-ro, Mapo-gu, Seoul 04066, Korea
Hyun Ah Kim: School of Industrial Management, Korea University of Technology & Education, 1600 Chungjeol-ro, Byeongcheon-myeon, Dongnam-gu, Cheonan City 31253, Korea

Sustainability, 2019, vol. 11, issue 8, 1-15

Abstract: Newly listed firms can actively engage in corporate social responsibility (CSR) to build reputation, but they may postpone CSR until they have enough slack for it. Related to this, prior literature does not provide consistent results, the US evidence supports the latter while the Chinese results support the former. To extend the literature, we use Korean listed companies and examine the association between the listing period and CSR. We further investigate the effect of analyst following on the relationship. The empirical results show that firms with a shorter listing period invest more in CSR and that the association exists only in firm-years followed by analysts, indicating the importance of the information environment to inform CSR. We additionally find that young listed companies mainly use social contribution and soundness, which can be discretionarily conducted from a short-term perspective. The results of this study using CSR to obtain a short-term objective suggest that policymakers need to analyze a firm’s behavior from various perspectives and to establish proper guidelines to achieve a long-term goal of CSR “sustainability”.

Keywords: corporate social responsibility (CSR), listing period; analyst following; firm age; firm value (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.mdpi.com/2071-1050/11/8/2447/pdf (application/pdf)
https://www.mdpi.com/2071-1050/11/8/2447/ (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:jsusta:v:11:y:2019:i:8:p:2447-:d:225898

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

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