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Seeking common ground: CSR conformity and stock liquidity

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  • Zhang, Lu
  • Li, Tianyu

Abstract

This paper investigates the impact of CSR conformity on stock liquidity from a legitimacy perspective. Based on the sample of Chinese listed firms from 2009 to 2021, the results reveal that CSR conformity mitigates legitimacy pressures, thereby significantly improving stock liquidity. Notably, this effect is primarily driven by the increased involvement in stakeholder-related CSR activities rather than third-party CSR activities. In addition, this liquidity-boosting effect is more pronounced in firms with more analyst attention and with higher institutional investor shareholding.

Suggested Citation

  • Zhang, Lu & Li, Tianyu, 2024. "Seeking common ground: CSR conformity and stock liquidity," Finance Research Letters, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:finlet:v:68:y:2024:i:c:s1544612324010444
    DOI: 10.1016/j.frl.2024.106014
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    Cited by:

    1. Xu, Jing & Luo, Qianfang, 2025. "Controlling shareholder equity pledging, financing constraints, and corporate social responsibility," Finance Research Letters, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    CSR conformity; Stock liquidity; Legitimacy;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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