 Financial crime and corporate social responsibility: Evidence from ChinaCaiquan Bai, Huimin Wang, Qihang Xue and Yaping Zhao Journal of International Money and Finance, 2025, vol. 151, issue C Abstract: This study uses criminal first-instance judgments of financial crimes published by China Judgments Online to construct an index of a city’s financial crime rate, focusing on the impact of financial crimes on corporate social responsibility (CSR). The higher the financial crime rate in a city where the firm is located is, the worse the firm’s CSR performance. The main reason for this phenomenon is that a higher city financial crime rate increases information asymmetry, intensifies financing constraints, and depresses investor sentiment. In addition, crimes that disrupt the management order of financial bills, deposits, and loans, as well as moderately severe financial crimes, have the greatest economic effects on CSR; internal and external corporate pressures play an important moderating role, reinforcing the impact of financial crime; and financial crime can damage corporate reputation through its impact on CSR. Keywords: Financial crime; Corporate social responsibility; Information asymmetry; Financing constraints; Investor sentiment (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:151:y:2025:i:c:s0261560624002456 DOI: 10.1016/j.jimonfin.2024.103258 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 |
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