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Sustainability with high-speed rails: The effects of transportation infrastructure development on firms’ CSR performance

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  • Chen, Yu
  • Gu, Xin
  • Gao, Yongqiang
  • Lan, Tian

Abstract

By using the unbalanced data of 1,433 listed firms from 2008 to 2018, this paper examines the relationship between high-speed rails (HSRs) and corporate social responsibility (CSR) in China. Building on institution theory and resource dependency theory, we argue that the development of HSRs can accelerate information flow and human mobility, thus improving the CSR performance of firms. The underlying mechanisms include public pressure and potential investment opportunities, which are associated with the intention to engage in CSR practices, and the diffusion of managerial practice, which is associated with the capability of implementing CSR practices. The relationship is moderated by resource dependence on external stakeholders. Specifically, when a firm perceives that it has strong capabilities and does not need to rely heavily on external stakeholders, the relationship between HSRs and CSR will be weakened. Moreover, when a firm operates in an uncertain and competitive environment, the positive impacts of HSRs on CSR implementation will be enhanced. Supplementary analyses based on firms’ sensitivity to public pressure, investment opportunities and diffusion of managerial practice also indicate that the HSR-effects in consumer-sensitive firms, younger firms, and firms with interlock board members are stronger.

Suggested Citation

  • Chen, Yu & Gu, Xin & Gao, Yongqiang & Lan, Tian, 2021. "Sustainability with high-speed rails: The effects of transportation infrastructure development on firms’ CSR performance," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(2).
    • Handle: RePEc:eee:jocaae:v:17:y:2021:i:2:s1815566921000199
    DOI: 10.1016/j.jcae.2021.100261
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    Cited by:

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    2. Yu Chen & Yuandi Wang & Shan Chen, 2021. "Are Chinese Executives Rewarded or Penalized by the Operation of High-Speed Railways?," Sustainability, MDPI, vol. 13(21), pages 1-14, October.
    3. Chen, Yu & Zhao, Changyi & Chen, Shan & Chen, Wenqing & Wan, Kunyang & Wei, Jia, 2023. "Riding the green rails: Exploring the nexus between high-speed trains, green innovation, and carbon emissions," Energy, Elsevier, vol. 282(C).
    4. Sun, Wenhao & Gao, Jijun & Jacoby, Gady & Wu, Zhenyu, 2024. "Access to capital and energy efficiency: How high-speed rail investments benefit high-tech firms," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    5. Sun, Yunpeng & Razzaq, Asif & Kizys, Renatas & Bao, Qun, 2022. "High-speed rail and urban green productivity: The mediating role of climatic conditions in China," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    6. Li, He & Lu, Juan & Guo, Feiyu, 2022. "High speed rail and corporate social responsibility performance: Analysis of intra-regional location and inter-regional spillover," Transport Policy, Elsevier, vol. 128(C), pages 65-75.

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