Threshold effect of government subsidy, corporate social responsibility and brand value using the data of China’s top 500 most valuable brands

Abstract

An increasing number of firms have begun to attach importance to corporate social responsibility (CSR) to obtain sustainable strategic advantages in the competitive market. On the basis of nonlinear perspective, panel data of A-share listed companies in the ranking list of China’s Top 500 Most Valuable Brands in 2012–2018 and Hansen panel threshold regression technology were adopted. With government subsidy and CSR being threshold variables, the internal mechanism about the influence of government subsidy and CSR on brand value was explored. Results show that the following. (1) CSR has a significantly inverted U-type threshold effect on brand value. (2) Government subsidy facilitates CSR with diminishing marginal utility. (3) When a difference exists in the strength of government subsidy, the influence of CSR on brand value presents a significant N-type law. Furthermore, threshold regression method was used to innovatively explore the complex nonlinear relationship among government subsidy, CSR, and brand value. This relationship has a significantly practical significance for listed firms for weighing the business decisions regarding the input of CSR and brand value, as well as subsidy policies for enterprises by the government.

The impact of economic policy uncertainty on corporate social responsibility: A new evidence from food industry in China

“…Unlike previous studies, some studies believe that macroeconomic uncertainty has a more prominent impact on the internal business activities of state-owned enterprises [31]. For example, Zhao et al [60] taking China's capital market as an example, argued that the inhibitory effect of economic policy uncertainty on CSR-related behavior is more pronounced in state-owned enterprises.…”

“…For further details, based on the real options theory, the inherent value of the enterprise investment project is decomposed, and the impact of economic policy uncertainty on enterprise investment is specifically reflected in the price of the enterprise products [29]. Using the American perpetual option pricing method to analyze corporate investment behavior [30], the following investment rules were derived [31]. If the economic policy uncertainty is low, so that the sales price of the enterprise's goods is greater than the investment threshold, the option premium is 0, and the enterprise should choose to invest.…”

Network evolution of diffusion in enterprise digitalization and intellectualization transformation: A technology—organization—environment framework perspective

“…However, the difficulty in implementing government subsidy-related policies is associated with the complexity of technology diffusion networks. Considering the difficulty of implementing technology subsidies and the degree of realism, research based on the cost of policy implementation in this case and the degree of cooperation of the public found that the implementation of a general static subsidy strategy can also achieve better results [ 77 , 78 ].…”

Corporate Social Responsibility and Green Technology Innovation: The Moderating Role of Stakeholders

“…Environmental protection subsidies can convey the government's emphasis on environmental protection to the world, encourage enterprises to increase their participation in social responsibility, and guide the overall market environment to attract green talent and undertake green innovation. Under the indirect effect of information transmission, the government granting environmental subsidies can help to provide external financial support to enterprises, prompting them to pay attention to the needs of stakeholders, pursue social and environmental performance beyond their economic benefits, and carry out GTI to protect the environment and achieve long-term sustainable development [39,40]. Therefore, this study proposes the following hypothesis: Hypothesis 2 (H2).…”