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Financial regulation and corporate social responsibility: Evidence from China

Author

Listed:
  • Liu, Qi
  • Wu, Jiejie

Abstract

Corporate social responsibility (CSR) is a crucial force driving sustainable economic development. Against the backdrop of China's market transformation, scientifically studying CSR from the perspective of the capital market is crucial for promoting high-quality economic development. We investigate the impact of financial regulation on CSR through the difference-in-differences method. We discover that financial regulation significantly improves CSR. We further uncover that the mechanisms of reduced corporate financial assets and managerial myopia explain the increase in CSR, and analyze the heterogeneous effects on firms with different characteristics.

Suggested Citation

  • Liu, Qi & Wu, Jiejie, 2025. "Financial regulation and corporate social responsibility: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:pacfin:v:89:y:2025:i:c:s0927538x24003512
    DOI: 10.1016/j.pacfin.2024.102599
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial regulation; Corporate social responsibility; China;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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