Does corporate social responsibility matter for corporate stability? Evidence from China

Yujing Gong () and Kung-Cheng Ho ()
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Yujing Gong: Zhongnan University of Economics and Law
Kung-Cheng Ho: Zhongnan University of Economics and Law

Quality & Quantity: International Journal of Methodology, 2018, vol. 52, issue 5, No 20, 2319 pages

Abstract: Abstract The study examines the link between corporate social responsivity (CSR) and corporate stability, and how product market competition affects this relationship. Using the unique CSR scores to the Chinese firms over the period 2009–2015, we find firms with stronger CSR performance tend to be more stable. This result consistent with the argument that ethically forward-looking managers employ CSR as a powerful tool to manage risk. However, this above positive association between CSR and stability is significant only in highly competitive industries, suggesting that product market competition provides modest incentives for managers to invest in CSR activities for general stakeholders’ interests.

Keywords: Corporate social responsibility; Stability; Product market competition (search for similar items in EconPapers)
JEL-codes: G11 G14 G34 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (11)

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DOI: 10.1007/s11135-017-0665-6

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