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Does digitization drive corporate social responsibility?

Author

Listed:
  • Jiang, Wei
  • Wu, Jiahao
  • Yang, Xiaozhong

Abstract

This study investigates the effect of firm-level digitization on corporate social responsibility (CSR) performance. Using a sample of Chinese A-share listed companies from 2010 to 2020 and a textual data mining approach, we find that digitization is positively associated with CSR performance with multiple tests suggesting that this relationship is causal. The study also finds that firm-level digitization promotes CSR by improving innovation inputs and outputs, stimulating innovation, and improving innovation capacity. The findings are more prominent for firms with lower financing constraints, larger sizes, and higher asset cash recovery rates.

Suggested Citation

  • Jiang, Wei & Wu, Jiahao & Yang, Xiaozhong, 2023. "Does digitization drive corporate social responsibility?," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 14-26.
    • Handle: RePEc:eee:reveco:v:88:y:2023:i:c:p:14-26
    DOI: 10.1016/j.iref.2023.06.010
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    References listed on IDEAS

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    1. Abagail McWilliams & Donald Siegel, 2000. "Corporate social responsibility and financial performance: correlation or misspecification?," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 603-609, May.
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    Citations

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    Cited by:

    1. Shen, Yongchang & Fu, Yunyun & Song, Malin, 2023. "Does digital transformation make enterprises greener? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1642-1654.
    2. Zhou, Zhiyong & Wu, Yanhong & Xie, Qinghua, 2024. "Social responsibility, information technology, and high-quality development of mining enterprise using structural equation modeling (SEM)," Resources Policy, Elsevier, vol. 91(C).
    3. Xu, Zhan & Wang, Solomon & Ye, Junchen, 2024. "The effect of digitization on corporate fraud detection evidence from China," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    4. Chen, Shiyi & Tian, Jiafu & Lu, Juan & Bao, Qiang, 2025. "Can digital collaboration curb corporate greenwashing: A perspective from government-bank-enterprise digital collaboration," Energy Economics, Elsevier, vol. 152(C).
    5. Li, Yiping & Zheng, Lanxing & Xie, Chang & Fang, Jiming, 2024. "Big data development and enterprise ESG performance: Empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 742-755.
    6. Cao, Lihong & Zhu, Xuanning & Li, Yi, 2026. "Firm digitalization and bank lending: Evidence from China," Research in International Business and Finance, Elsevier, vol. 82(C).
    7. Bansal, Sanchita & Singh, Shifali & Nangia, Priya & Chanaliya, Nisha & Sala, Dariusz, 2024. "Sustaining the mining industry through the lens of corporate social responsibility: A review research," Resources Policy, Elsevier, vol. 99(C).

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    Keywords

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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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