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Does venture capital improve corporate social responsibility performance?

Author

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  • Luo, Ronghua
  • Zhao, Baofang
  • Han, Chunjia
  • Wang, Sen

Abstract

In recent years, market agents have paid more attention to firm-level sustainable developments, but the economic effects of venture capital on corporate social responsibility (CSR) performance are not clear. We empirically investigated this issue using data from Chinese nonfinancial A-share listed firms between 2010 and 2019. We found that venture capital participation may reduce the CSR performance of portfolio companies (e.g., SMEs), and the quality of internal control (ICQ) is an effective mechanism for venture capital to affect CSR performance. We offer new insights into the relationship between venture capital and CSR in emerging markets.

Suggested Citation

  • Luo, Ronghua & Zhao, Baofang & Han, Chunjia & Wang, Sen, 2023. "Does venture capital improve corporate social responsibility performance?," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 1138-1150.
    • Handle: RePEc:eee:reveco:v:88:y:2023:i:c:p:1138-1150
    DOI: 10.1016/j.iref.2023.07.070
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    References listed on IDEAS

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    1. Yuzhong Lu & Guillermo A. Buitrago & Meng Li, 2025. "Venture Capital and Social Responsibility Behavior: An Evolutionary Game‐Based Approach," Complexity, John Wiley & Sons, vol. 2025(1).
    2. Lin, Boqiang & Xie, Yongjing, 2026. "Venture capital and the resilience of renewable energy enterprises: Nonlinear relationships and supply chain spillover effects," Renewable Energy, Elsevier, vol. 256(PB).
    3. Lin, Boqiang & Xie, Yongjing, 2024. "Driving renewable energy innovation investments: Is venture capital a novel strategic choice? Evidence from China," Renewable Energy, Elsevier, vol. 237(PC).
    4. Zhang, Lin & Cui, Xiaomeng & Jing, Wei, 2024. "Who are responsible venture capitalists? The effect of business experience," International Review of Economics & Finance, Elsevier, vol. 96(PA).

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