Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

Jingwen Dai, Chao Lu and Jipeng Qi
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Jingwen Dai: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Chao Lu: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Jipeng Qi: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China

Sustainability, 2019, vol. 11, issue 2, 1-20

Abstract: We take Chinese A-share listed companies in years 2010–2015 as a sample to examine the relationship between Corporate Social Responsibility (CSR) information disclosure and stock price crash risk using the fixed effect model. The results show that: (1) There is an inverted U-shaped nonlinear relationship between CSR information disclosure and stock price crash risk. That is, as the CSR information disclosure level increases, the CSR information disclosure first aggravates and then reduces the stock price crash risk; (2) under different disclosure motives, there is a significant difference in the impact of CSR information disclosure on stock price crash risk. There is still an inverted U-shaped relationship between mandatory CSR information disclosure and stock price crash risk, but not for the semi-mandatory and voluntary disclosure; (3) the academic independent director has a positive adjustment effect on the relationship between CSR information disclosure and stock price crash risk, while the institutional investor has a negative adjustment effect on the relationship between CSR information disclosure and stock price crash risk. The research is of great significance for promoting the fulfillment of CSR, improving corporate governance and stabilizing the capital market.

Keywords: Corporate Social Responsibility (CSR); stock price crash risk; academic independent director; institutional investor (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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