Corporate social responsibility and bank credit loans: Exploring the moderating effect of the institutional environment in China

Huang, Gui‐Fang; Ye, Fei; Li, Yina; Chen, Lujie; Zhang, Minhao

doi:10.1007/s10490-021-09800-x

Cited by 20 publications

(16 citation statements)

References 76 publications

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“…it is considered unlikely that such enterprises would evade repayment) (Wang et al, 2023a). In such a case, the capital market will be more willing to provide financing services to firms with higher ESG performance or will lend funds to them at lower borrowing rates (Huang et al, 2023). Further, when firms obtain more or low-cost financial support from the capital market, they can afford to purchase more advanced equipment or recruit high-quality research talent to achieve higher levels of innovation efficiency.…”

Section: Esg and Firms' Innovation Efficiencymentioning

confidence: 99%

“…To address the aforementioned gaps in the literature, we constructed a systematic theoretical framework based on signaling theory that dissects the logical relationship between ESG performance and firms' innovation efficiency. Signaling theory states that by sending signals to reduce the level of information asymmetry between two parties, the signal sender can change the attitude or behavior of the signal receiver (Huang et al, 2023;Ren et al, 2022;Spence, 1973). Signaling theory is being widely used in research to explain how corporate social responsibility (CSR) fulfillment behavior affects firms' economic outcomes (Conte et al, 2023;Huang et al, 2023;Koh et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

“…Signaling theory states that by sending signals to reduce the level of information asymmetry between two parties, the signal sender can change the attitude or behavior of the signal receiver (Huang et al, 2023;Ren et al, 2022;Spence, 1973). Signaling theory is being widely used in research to explain how corporate social responsibility (CSR) fulfillment behavior affects firms' economic outcomes (Conte et al, 2023;Huang et al, 2023;Koh et al, 2023). Based on signaling theory (Spence, 1973), we argue that ESG signaling reduces information asymmetry between firms and their core stakeholders (e.g.…”

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…Signaling theory is being widely used in research to explain how corporate social responsibility (CSR) fulfillment behavior affects firms' economic outcomes (Conte et al. , 2023; Huang et al. , 2023; Koh et al.…”

Section: Introductionmentioning

confidence: 99%

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ESG performance and firms' innovation efficiency: the moderating role of state-owned firms and regional market development

Wan,

Fu,

Zhong

2023

BPMJ

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PurposeAlthough the impact of environmental, social and governance (ESG) on firms' innovation has attracted attention, the existing research findings diverge. The authors believe that failure to consider both innovation input and output is an important reason for the divergence of conclusions in the extant literature when discussing the impact of ESG and firm innovation. Thus, based on signaling theory, this study aims to reconcile these divergent findings by examining the impact of ESG performance on firms' innovation efficiency.Design/methodology/approachTo seek empirical evidence to support the authors’ theoretical view, the authors conduct an empirical test based on the Tobit model using 8 years of data from Chinese listed companies.FindingsAlthough ESG performance effectively improves firms' innovation efficiency, the institutional-level signaling environment (including state-owned firms and regional market development) weakens the positive effect of ESG performance on firms' innovation efficiency. Further tests suggest that financing constraints partially mediate the relationship between ESG performance and firms' innovation efficiency.Originality/valueBy systematically revealing whether, how and under what circumstances ESG performance improves firms' innovation advantages, this study bridges the gap in the existing literature and highlights important implications to suggest how firms can better capture the value associated with ESG.

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Section: Esg and Firms' Innovation Efficiencymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

ESG performance and firms' innovation efficiency: the moderating role of state-owned firms and regional market development

Wan,

Fu,

Zhong

2023

BPMJ

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The moderating role of investor sentiments between sustainability reporting and firm reputation. Evidence from Chinese listed firms

Abideen

2024

Corp Soc Responsibility Env

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This study explores the relationship between sustainability reporting, investor sentiments, and firm reputation in the Chinese stock market. Utilizing panel data from 2018 to 2023 on non‐financial A‐share firms in China, this study employs OLS regression and advanced techniques to ensure robustness, including tests for heteroskedasticity and addressing endogeneity concerns through 2SLS, and potentially the two‐step GMM approach. Analysis exhibits a positive relationship between sustainability reporting, investor sentiments, and firm reputation. Strong sustainability practices correlate with more positive investor sentiment and enhanced firm reputation, aligning with sustainable development principles. Limitations include the restricted data timeframe, suggesting broader insights could be gained by extending the analysis period. Additionally, the study's focus on brand equity as a metric for reputation may overlook other facets. Future research could explore alternative reputation metrics and measurement methods. Integrating environmental, social, and governance reporting into corporate strategies can drive long‐term value creation and sustainable development, offering actionable insights for policymakers, investors, and corporate decision‐makers. This study contributes unique insights into how sustainability reporting influences investor sentiment and firm reputation within the Chinese stock market context, leveraging the SR framework and focusing on firms in China, thus providing valuable perspectives on a dynamic market.

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Unveiling the role of corporate social responsibility on the efficiency of capital investments and their speed of adjustment: Insights from India

2023

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Corporate social responsibility and bank credit loans: Exploring the moderating effect of the institutional environment in China

Cited by 20 publications

References 76 publications

ESG performance and firms' innovation efficiency: the moderating role of state-owned firms and regional market development

ESG performance and firms' innovation efficiency: the moderating role of state-owned firms and regional market development

The moderating role of investor sentiments between sustainability reporting and firm reputation. Evidence from Chinese listed firms

Unveiling the role of corporate social responsibility on the efficiency of capital investments and their speed of adjustment: Insights from India

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