 How does foreign pressure affect a firm's corporate social performance? Evidence from listed firms in TaiwanChyi-Lun Chiou and Pei-Gi Shu Journal of Multinational Financial Management, 2019, vol. 51, issue C, 1-22 Abstract: We propose the foreign pressure (FP) hypothesis to illustrate how firms confronting FP from their FDI in countries with high CSR affects a firm's corporate social performance (CSP). We use a battery of proxies from a firm's FDI exposure to measure FP and adopt a sample of listed firms in Taiwan to verify the FP hypothesis. Alternatively, the positive FP–CSP relationship can be explained with the learning effect, indicating firms learn and voluntarily adopt practices of high CSR. However, we cannot confirm a positive FP–CSP relationship when firms have FDI in tax havens. Moreover, firms respond more to FP when it originates from concerns with CSP than from strengths in CSP. These results are inconsistent with those of the learning effect. Finally, we explore CSP sub categoriesand note the FP effect is more salient in employee-related CSP than in community or environment-related CSP. Keywords: Corporate social performance; Foreign direct investment; Confucian familism (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:mulfin:v:51:y:2019:i:c:p:1-22 DOI: 10.1016/j.mulfin.2019.04.006 Access Statistics for this article Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth More articles in Journal of Multinational Financial Management from Elsevier |
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