The Response of CSR to Economic Policy Uncertainty: Evidence from China

Hailiang Zou (), Ruijing Wang and Guoyou Qi ()
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Hailiang Zou: SILC Business School, Shanghai University, Shanghai 200444, China
Ruijing Wang: SILC Business School, Shanghai University, Shanghai 200444, China
Guoyou Qi: School of Business, East China University of Science and Technology, Shanghai 200237, China

Sustainability, 2023, vol. 15, issue 17, 1-19

Abstract: The dynamics and instability of economic policies exercise considerable influence on firm behaviors. This study aims to explore the impact of economic policy uncertainty on the level of CSR that firms are engaged in and the heterogeneity of this impact across firms. Using a dataset of Chinese-listed companies from 2011 to 2019, which consists of 837 different firms and 4551 firm-year observations, the results show a negative response of CSR to economic policy uncertainty in China, which is mitigated by the political connections and resource slack that firms possess. These findings underscore the importance of a predictable business environment for CSR behaviors and the capability of firms to cope with uncertainty.

Keywords: economic policy uncertainty; corporate social responsibility; political connection; resource slack (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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