 Shifting risk preferences of foreign institutional investors on corporate social responsibility amidst the U.S.-China trade warLu Yang and Haifeng Xu Journal of International Money and Finance, 2025, vol. 154, issue C Abstract: In this study, we investigate the behavior of foreign institutional investors (FIIs) in China towards corporate social responsibility (CSR) amidst the uncertainties posed by the U.S.-China trade war. Utilizing a difference-in-differences estimation approach, our analysis reveals the shifting risk preferences of FIIs towards firms engaged in international trade and the specific impacts on firms listed on the Unverified List (UVL). Our findings indicate that FIIs subject to common geopolitical risk exhibit improvements in CSR performance, whereas FIIs affected by idiosyncratic geopolitical risk related to UVL show a decline in CSR performance. Furthermore, our research highlights that the shifting risk preferences of FIIs for CSR are significantly more evident among firms without U.S. capital. Collectively, our results suggest that FIIs are sensitive to geopolitical risk, which affects their commitment to CSR. Keywords: Corporate social responsibility; U.S.-China trade war; Foreign institutional ownership; Geopolitical risk (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:jimfin:v:154:y:2025:i:c:s0261560625000634 DOI: 10.1016/j.jimonfin.2025.103328 Access Statistics for this article Journal of International Money and Finance is currently edited by J. R. Lothian More articles in Journal of International Money and Finance 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.