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Foreign Ownership and Corporate Social Responsibility: Evidence from China

Author

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  • Mingyuan Guo

    (College of Management and Economics, Tianjin University, Tianjin 300072, China)

  • Chendi Zheng

    (College of Management and Economics, Tianjin University, Tianjin 300072, China)

Abstract

This paper employs the data of corporate social responsibility rating score of A-share listed companies in China from 2009 to 2018 as a sample to verify the impacts of foreign ownership on corporate social responsibility. Furthermore, this paper explores the moderating role of legal institutional distance and economic institutional distance in the impact of foreign ownership on corporate social responsibility. The empirical results of panel data models show that: Firstly, foreign ownership has a significant positive impact on corporate social responsibility. Secondly, legal institutional distance and economic institutional distance have a positive moderating role in the impacts of foreign ownership on corporate social responsibility. The results of propensity score matching, two-stage least squares and alternative variables methods also give strong backing to the above conclusions. Finally, this paper puts forward that China’s listed companies are supposed to make full use of the supervision power of foreign ownership to promote corporate social responsibility.

Suggested Citation

  • Mingyuan Guo & Chendi Zheng, 2021. "Foreign Ownership and Corporate Social Responsibility: Evidence from China," Sustainability, MDPI, vol. 13(2), pages 1-22, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:2:p:508-:d:476211
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    Cited by:

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    2. Luo, Yi & Ma, Jian & Wang, Yu & Ye, Aishan, 2022. "Board internationalization and corporate social responsibility," The North American Journal of Economics and Finance, Elsevier, vol. 63(C).
    3. Luk Luk Fuadah & Mukhtaruddin Mukhtaruddin & Isni Andriana & Anton Arisman, 2022. "The Ownership Structure, and the Environmental, Social, and Governance (ESG) Disclosure, Firm Value and Firm Performance: The Audit Committee as Moderating Variable," Economies, MDPI, vol. 10(12), pages 1-16, December.
    4. Han, Minghui & Ding, Ashley & Zhang, Hao, 2022. "Foreign ownership and earnings management," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 114-133.
    5. Cui, Di & Ding, Mingfa & He, Zhongda & Shen, Mi, 2022. "Restricted shares and CSR: Evidence from foreign strategic investors in China," Pacific-Basin Finance Journal, Elsevier, vol. 76(C).
    6. Wanli Li & Tiantian Yan & Yue Li & Ziqiao Yan, 2023. "Earnings management and CSR report tone: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1883-1902, July.
    7. Maoliang Bu & Ying Liu, 2022. "Multinational Enterprises’ Dual Agency Role: Formal Institutions and Corporate Social Responsibility in Emerging Markets," Sustainability, MDPI, vol. 14(4), pages 1-22, February.
    8. Ching-Chung Lin & Tran Phuoc Nguyen, 2022. "The Impact of Ownership Structure on Corporate Social Responsibility Performance in Vietnam," Sustainability, MDPI, vol. 14(19), pages 1-13, September.
    9. Xu, Lili & Lee, Sang-Ho, 2021. "Strategic corporate social responsibility and tariff policies: The timing of commitments and policy implications," MPRA Paper 108499, University Library of Munich, Germany.
    10. Jiangjun Li & Tao Fu & Shengyue Han & Rui Liang, 2023. "Exploring the Impact of Corporate Social Responsibility on Financial Performance: The Moderating Role of Media Attention," Sustainability, MDPI, vol. 15(6), pages 1-16, March.

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