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Institutional blockholder, exit threats, and firms CSR performance

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  • Ren, Xingzi
  • Xu, Zelin
  • Lei, Chengyao

Abstract

This research examines the role of blockholders in shaping corporate social responsibility (CSR) practices within A-share listed companies in China over the period of 2006–2019. Our analysis reveals that non-financial blockholders significantly promote CSR initiatives, while the influence of financial blockholders appears negligible. The study also uncovers the pivotal role of stock liquidity as a moderator in the dynamic between blockholders and CSR, suggesting that the exit threat is provital mechanism through which non-financial blockholders exert their influence on CSR activities. These findings are robust, having addressed potential endogeneity issues through a series of rigorous methodologies including the examination of exogenous shocks, the application of the Propensity Score Matching-Difference in Differences (PSM-DID) model, deployment of multi-dimensional fixed effects models, and Change Regression analysis.

Suggested Citation

  • Ren, Xingzi & Xu, Zelin & Lei, Chengyao, 2025. "Institutional blockholder, exit threats, and firms CSR performance," International Review of Economics & Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025000954
    DOI: 10.1016/j.iref.2025.103932
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