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Social responsibility, board composition, and corporate legal risk

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  • Xu, Jing
  • Wang, Lu

Abstract

This study uses listed companies’ data from 2012 to 2022 to investigate the relationship between corporate social responsibility (CSR), board composition, and legal risk. The findings reveal that enterprises’ active CSR fulfillment reduces legal risk, reasonable board composition can mitigate legal risk, audit quality has an essential mediating role in CSR and corporate legal risk, and financial regulation has a moderating role in this relationship. Heterogeneity analysis demonstrates differences in the impact of CSR on the legal risk of profitable and unprofitable enterprises.

Suggested Citation

  • Xu, Jing & Wang, Lu, 2025. "Social responsibility, board composition, and corporate legal risk," Finance Research Letters, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325001710
    DOI: 10.1016/j.frl.2025.106907
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