CSR and Long-Term Corporate Performance: The Moderating Effects of Government Subsidies and Peer Firm’s CSR

Wenli Zhao, Guangyu Ye, Guangyi Xu, Chong Liu, Dandan Deng and Ming Huang
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Wenli Zhao: School of Business Administration, South China University of Technology, Guangzhou 510640, China
Guangyu Ye: School of Business Administration, South China University of Technology, Guangzhou 510640, China
Guangyi Xu: School of Business Administration, South China University of Technology, Guangzhou 510640, China
Chong Liu: School of Business Administration, South China University of Technology, Guangzhou 510640, China
Dandan Deng: School of Business Administration, South China University of Technology, Guangzhou 510640, China
Ming Huang: School of Business Administration, South China University of Technology, Guangzhou 510640, China

Sustainability, 2022, vol. 14, issue 9, 1-13

Abstract: Effectively carrying out social responsibility is a critical strategy for the sustainable development of enterprises. Under the influence of institutional isomorphism, the relationship between corporate social responsibility and performance will be affected by the level of the peer firm’s social responsibility and government subsidies. Based on institutional theory, this paper discusses the relationship between corporate social responsibility (CSR) and corporate performance, using relevant data from Chinese listed companies. The results show that there is an inverted U-shaped relationship between social responsibility and corporate performance; the peer firm’s CSR and government subsidies weaken the inverted U-shaped relationship between CSR and corporate performance. The results provide useful theoretical insights for the performance of CSR.

Keywords: corporate social responsibility; government subsidies; peer firm’s CSR (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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