Foreign Ownership and Corporate Social Responsibility: Evidence from China

Mingyuan Guo and Chendi Zheng
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Mingyuan Guo: College of Management and Economics, Tianjin University, Tianjin 300072, China
Chendi Zheng: College of Management and Economics, Tianjin University, Tianjin 300072, China

Sustainability, 2021, vol. 13, issue 2, 1-22

Abstract: This paper employs the data of corporate social responsibility rating score of A-share listed companies in China from 2009 to 2018 as a sample to verify the impacts of foreign ownership on corporate social responsibility. Furthermore, this paper explores the moderating role of legal institutional distance and economic institutional distance in the impact of foreign ownership on corporate social responsibility. The empirical results of panel data models show that: Firstly, foreign ownership has a significant positive impact on corporate social responsibility. Secondly, legal institutional distance and economic institutional distance have a positive moderating role in the impacts of foreign ownership on corporate social responsibility. The results of propensity score matching, two-stage least squares and alternative variables methods also give strong backing to the above conclusions. Finally, this paper puts forward that China’s listed companies are supposed to make full use of the supervision power of foreign ownership to promote corporate social responsibility.

Keywords: foreign ownership; corporate social responsibility; legal institutional distance; economic institutional distance; panel data model; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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