Does community environment matter to corporate social responsibility?

Dejun Wu, Chen Lin and Sibo Liu

Finance Research Letters, 2016, vol. 18, issue C, 127-135

Abstract: How does the preference of local stakeholders shape firm's corporate social responsibility (CSR)? Using a twenty-year U.S. sample, this paper examines the effects of the community demographic and cultural environment on CSR. We find that firms located in counties with more senior residents and/or higher levels of religiosity display higher degree of corporate social responsibility. In addition, we find the positive effects of local seniors and religiosity are stronger for less financial constrained firms. The result is robust after controlling for firm fixed effects, operating state trends and incorporation state trends. Taken together, our evidence supports a stakeholder theory of corporate social responsibility.

Keywords: Corporate social responsibility; Stakeholders; Community; Seniors; Religiosity (search for similar items in EconPapers)
JEL-codes: G02 G12 G30 G32 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:18:y:2016:i:c:p:127-135

DOI: 10.1016/j.frl.2016.04.010

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