CSR and Firm Value: Evidence from China

Hu, Yujun; Chen, Shouming; Shao, Yuexin; Gao, Su

doi:10.3390/su10124597

Cited by 88 publications

(102 citation statements)

References 92 publications

(133 reference statements)

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“…The measurements of these six variables were directly obtained from Hexun CSR dataset, which provides the annual CSR rating scores of all Chinese listed companies since 2010, the year after Chinese listed companies were officially required to issue their CSR reports. Hexun CSR dataset is regarded as the most comprehensive, latest, authoritative CSR database in China, and thus has been widely applied in relevant empirical studies [101,102].…”

Section: Dependent Variablesmentioning

confidence: 99%

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

Wei

et al. 2019

Sustainability

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Prior work on corporate social responsibility (CSR) has focused mainly on its effects on the short-term performance of firms from developed countries. In this article, we shed light on its effects on organizational resilience, which is defined as the firm's ability to positively cope with environmental turbulence, and operationalized by long-term, improved sales growth and financial volatility. In line with this operationalization, we adopt CSR's performance-enhancing and performance-insuring mechanisms to disentangle the relationship between CSR and organizational resilience. Furthermore, we divide CSR into five dimensions, namely shareholder, employee, business, society and environment-related CSR, and respectively examine their impacts on organizational resilience. The empirical study on a large sample of public firms in China from 2010 to 2017 shows that CSR as a whole significantly increases the firms' long-term growth and reduces their financial volatility. As for the five specific dimensions, they all have a significant negative effect on financial volatility, and the employee, business, environment-related CSR are positively associated with long-term growth. Yet, the empirical results did not indicate significant associations between shareholder and society-related CSR and firms' long-term growth. This study first explores the impacts of CSR's different dimensions on organizational resilience. Also, we contribute to enriching the literature on CSR by examining the long-term performance-insuring effect of CSR with a quantitative analysis of emerging markets. Finally, we discuss some important managerial implications, as well as promising directions for future research.2 of 23 conditions, unestablished industrial structures, and the intense, chaotic competition brought by rapid development, Chinese enterprises are likely to face more changes and uncertainties in their business environment, which makes them more vulnerable than those from developed countries. Second, as the concern about CSR in China comes far later than that in developed countries, the effect of Chinese CSR on organizational resilience may be different. The Kinder, Lydenberg, and Domini (KLD) database, for example, began to internationally provide ratings of corporate social performance in 1991. While, the first official research report on Chinese CSR was released in 2009, and then Chinese listed companies were required to issue their annual CSR reports. In line with this, we aim at providing some new insights of CSR and its effects on organizational resilience with evidence from emerging markets.In doing so, we first clarify the conceptualization and operationalization of organizational resilience. Defined as the ability of an organization to respond positively to environmental changes, organizational resilience is a latent, unobservable construct usually measured by its outcomes [6]. The most desired outcome of organizational resilience recognized in extant literature is a firm's persistent superior performance in the changing business en...

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Section: Dependent Variablesmentioning

confidence: 99%

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

Wei

et al. 2019

Sustainability

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“…Carroll (2015) indicated that CSR is growing in relevance in modern business practice. Integrating CSR into business practices can contribute to an increase in company value (Hu et al, 2018). Therefore, companies that engage in CSR practices are more profitable (Hategan et al, 2018).…”

Section: Corporate Social Responsibility Practicesmentioning

confidence: 99%

“…Oh, Hong, and Hwang (2017) indicated that engaging in CSR behaviors can be a primary tool in attaining sustainable growth. However, the value of CSR can be affected through stakeholder perceptions (Hu, Chen, Shao, & Gao, 2018). To increase consumer value, businesses must understand which dimensions of CSR (economic, legal, ethical, or philanthropic) that various generations perceive to be most significant.…”

Section: Introductionmentioning

confidence: 99%

Importance of Generational Corporate Social Responsibility Perspective: A Literature Review

2020

JMDC

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The corporate social responsibility concept (CSR) is attracting attention in the business environment. This paper includes a review of CSR and the importance of understanding generational perspective of CSR. Evidence suggests that integrating CSR into business strategy has an impact on a company's ability to attract and retain consumers. Literature revealed that implementing CSR initiatives results in benefits including building a favorable reputation and consumer loyalty. As a result, implementing CSR initiatives tailored to generational preferences might increase the ability of a business to realize the benefits previously listed. Therefore, understanding the perspectives of a specific generational market is meaningful.

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“…In addition, some scholars agree with the reputation effect of CEP, but firms have difficulty internalizing the effects to complement the costs [37]. The alternative view argues that firms can cultivate rare, unduplicated, and irreplaceable resources in the process of increasing CEP based on instrument stakeholder theory and resource-based views [38], thus positively affecting firm value [8]. Meanwhile, Singh et al [39] thought that getting accreditation in environmental programs such as ISO 14000 standards enables firms to achieve legitimacy by signaling to stakeholders their internal emphasis on environmental performance and pressing their supply chain partners to obtain similar accreditation.…”

Section: Consequences Of Cepmentioning

confidence: 99%

“…When we focus on corporate environment practices, only 33% of listed firms in China choose to publish social and environmental reports [6]; most firms doubt that this action will detract from firm value [7]. Herein, the corporate value mainly refers to the corporate market value [8], since it has less discretionary space, compared to the accounting-based variable [9]. Meanwhile, it can better predict firm performance in the long run, therefore testing whether a certain corporate environmental strategy is sustainable [10].…”

Section: Introductionmentioning

confidence: 99%

A Win-Win Outcome between Corporate Environmental Performance and Corporate Value: From the Perspective of Stakeholders

2019

Sustainability

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This paper combines determinants of corporate environment performance (CEP) and the effect of CEP on corporate value together, namely how to motivate firms to conduct environmental protection from the perspective of enhancing firm value. Using a sample of 204 observations of listed corporations in Chinese pollution-intensive industries over the period of 2013–2014, we observed that: (1) compared to investment in a single stakeholder, combinations of multidimensional stakeholders are more likely to affect CEP, and the path is not unique; (2) employees have a positive role, but investors, the community, suppliers, and customers have negative roles; (3) among three patterns for high CEP, both high investment in employees and low investment in the community, suppliers and customers will not detract from firm value, i.e., a win-win outcome; (4) among three patterns for low CEP, one will enhance firm value; and (5) the investor should be seen as an important breakthrough in corporate environmental protection. Such conclusions have stronger promotional value for other emerging countries where corporate social and environmental responsibility is still in the initial stage and the traditional corporate government mode still has a leading position.

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CSR and Firm Value: Evidence from China

Cited by 88 publications

References 92 publications

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

Importance of Generational Corporate Social Responsibility Perspective: A Literature Review

A Win-Win Outcome between Corporate Environmental Performance and Corporate Value: From the Perspective of Stakeholders

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