The Effect of Strategic Corporate Social Responsibility on Financial Performance: Evidence from China

Bofu Deng, Li Ji and Zhongmin Liu

Emerging Markets Finance and Trade, 2022, vol. 58, issue 6, 1726-1739

Abstract: This study uses the perspective of corporate strategy to examine the relationship between corporate social responsibility and corporate financial performance in China. Following the theoretical business strategy framework and resource-based theory, we adopt the ordinary least squares method to conduct a multiple regression analysis of the relationship between CSR and CFP under different strategy types. We find that for prospectors, CSR is positively correlated with CFP. However, for defenders, it is negatively correlated. Our results remain robust after a series of robustness tests and controlling endogeneity. Our findings help to explain the inconsistent results obtained in the literature, extend our understanding of CSR and the consequences of corporate strategy, and provide a reference for international investors and emerging markets.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2021.1925245 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:58:y:2022:i:6:p:1726-1739

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2021.1925245

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().