Do Lenders Value Corporate Social Responsibility? Evidence from China

Ye, Kangtao; Zhang, Ran

doi:10.1007/s10551-011-0898-6

Cited by 250 publications

(162 citation statements)

References 44 publications

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“…They indicate that such scores yield greater cost of capital benefit for non-SOEs. Similarly, Ye and Zhang (2011) show that CSR disclosure reduces Chinese firms' debt funding cost, so long as CSR investment is at sub-optimal levels. Moreover, if CSR disclosure reinforces overall firm governance, it should also be value-enhancing (Cheung et al, 2014b).…”

Section: Sample Selection and Data Collectionmentioning

confidence: 95%

The role of board gender and foreign ownership in the CSR performance of Chinese listed firms

McGuinness

Vieito

Wang

2017

Journal of Corporate Finance

693

473

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China's recent promotion of Corporate Social Responsibility (CSR) has coincided with a marked increase in the number of Chinese listed firms attracting female board members and foreign equity investors. Using Rankins' (RKS) ratings over the 2009 to 2013 period, we show that greater gender balance in top-management supports stronger CSR performance. This finding broadens gender-based accounts emphasizing social networks (Westphal and Milton, 2000), Critical Mass Theory (Kramer et al., 2006;Bear et al., 2010;and Soares et al., 2011) and team dynamics (Woolley et al., 2010;and Hoogendoorn et al., 2013). Findings also reveal stronger CSR performance in firms with a female CEO. Female leadership thus appears to be just as important as gender mix in driving CSR change.CSR ratings are also increasing in foreign ownership levels. We examine whether a political-networking motivation underlies foreign investment (Du and Girma, 2010;Liu et al., 2014a;Lin et al., 2015;and Jiang and Kim, 2015). We argue that qualified foreign institutional investors (QFIIs) deploy socialengagement in non-SOEs to build competitive advantage. But in SOEs, where strong political networks already exist, QFIIs have less incentive to boost CSR ratings. However, results indicate little difference in the social ratings of QFII-invested SOEs and non-SOEs.Additionally, we confirm the Barnea and Rubin (2010) contention of an inversion in social ratings at entrenched managerial ownership levels. Non-linear rating effects also emerge in relation to state ownership (Li et al., 2013). Finally, CSR performance exhibits positive (negative) relation with a listed entity's size and age (leverage and lagged return-on-equity) but virtually no connection with independent board representation.

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Section: Sample Selection and Data Collectionmentioning

confidence: 95%

The role of board gender and foreign ownership in the CSR performance of Chinese listed firms

McGuinness

Vieito

Wang

2017

Journal of Corporate Finance

693

473

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“…For example, the antecedents and consequences of environmental proactivity may be different in China versus the United States or other Western countries. As the second largest economy in the world and the largest emerging market, China, is of particular interest (Ye and Zhang, 2011). Despite China's tremendous economic growth, we know little of its growth as it relates to CSR and environmental responsibility specifically (Gao, 2009).…”

Section: Is the Red Dragon Green? An Examination Of The Antecedents Amentioning

confidence: 99%

“…Similarly, in this study we examine competitive advantages manifested through costs, reputation and innovation (Delmas et al, 2011). While competitive advantages to environmental proactivity have been well documented in Western contexts (e.g., Ambec and Lanoie, 2008;Bansal and Clelland, 2004;Hart, 1995;Hart and Ahuja, 1996;Miles and Covin, 2000;Rooney, 1993;Russo and Fouts, 1997), we know of no research that has empirically examined the relationship between environmental proactivity and competitive advantage in the largest emerging market, China (Ye and Zhang, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Is the Red Dragon Green? An Examination of the Antecedents and Consequences of Environmental Proactivity in China

Walker

Huo

2013

J Bus Ethics

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China is the world's second largest economy and the largest emitter of carbon dioxide, yet we know little about environmental proactivity in the most populated country in the world. We address this gap through a survey of 161 Chinese companies with two respondents per firm (N = 322) where we seek to identify the antecedents and consequences of environmental proactivity. We identify two categorizations of environmental proactivity: Environmental operational improvements and environmental reporting. We find that ecological motivations and regulatory stakeholder pressure are positively related to both types of environmental proactivity, and external stakeholder pressure is negatively related to environmental reporting. Furthermore, we find that (1) if a firm is environmentally proactive (as it relates to either measure) and they are ecologically motivated, there is a positive and significant cost advantage, and (2) if a firm makes use of environmental operational improvement and they are competitively motivated, there is a positive and significant reputation advantage. Implications for researchers, managers, and policy-makers in China are discussed.

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“…Financial leverage in terms of debt-to-asset ratio reflects the influence of creditors on corporate social responsibility and environmental disclosure [36,37]. In China, enterprises also take lenders into account when they undertake socially-responsible endeavors [38]. In the same token, the proportion of debt to the total asset is likely to have a positive impact on CER performance.…”

Section: Hypothesis 8 (H8) State Ownership Positively Affects Cer Pementioning

confidence: 99%

Corporate Environmental Responsibility and Environmental Non-Governmental Organizations in China

Yang¹,

Liu²,

Sun³

et al. 2017

Sustainability

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Abstract:In China, environmental non-governmental organizations (ENGOs) play an important supervisory role to address ecological issues together with government regulation and enterprise implementation. This study examines the effect of ENGO presence on corporate environmental responsibility (CER) performance, along with internal factors as covariate variables. With a sample of 677 enterprises, it operationalizes the independent variable in terms of the number of ENGOs within certain distances from each enterprise, and the dependent variable based on the corporate social responsibility report using the specific criteria in the Global Reporting Initiative (GRI) sustainability reporting guidelines. The results of Tobit regression analyses indicate that ENGO presence is conducive to CER performance, and asset size, power concentration, and industry type also make differences. The findings suggest that ENGOs are helpful in solving environment issues by bridging the gap between private and public sectors. Theoretical and practical implications are discussed.

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Do Lenders Value Corporate Social Responsibility? Evidence from China

Cited by 250 publications

References 44 publications

The role of board gender and foreign ownership in the CSR performance of Chinese listed firms

The role of board gender and foreign ownership in the CSR performance of Chinese listed firms

Is the Red Dragon Green? An Examination of the Antecedents and Consequences of Environmental Proactivity in China

Corporate Environmental Responsibility and Environmental Non-Governmental Organizations in China

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