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Corporate Social Responsibility and Product Market Power

Author

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  • Chong-Chuo Chang

    (Department of Banking and Finance, College of Management, National Chi Nan University, Nantou 54561, Taiwan)

  • Han Yang

    (Department of Strategy and Development of Emerging Industries, College of Management, National Chi Nan University, Nantou 54561, Taiwan)

  • Kun-Zhan Hsu

    (Department of Banking and Finance, College of Management, National Chi Nan University, Nantou 54561, Taiwan)

Abstract

This study explores the impact of corporate social responsibility (CSR) on the product market power by examining listed firms on the Taiwan Stock Exchange and Taipei Exchange from 2005 to 2017. We use CSR awards as a social responsibility indicator, and the results show a positive relationship between CSR and excess price-cost margins (market share), supporting the thesis that firms that value CSR activities can strengthen the competitive advantage of products in the market.

Suggested Citation

  • Chong-Chuo Chang & Han Yang & Kun-Zhan Hsu, 2022. "Corporate Social Responsibility and Product Market Power," Economies, MDPI, vol. 10(6), pages 1-14, June.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:6:p:151-:d:843195
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    References listed on IDEAS

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    4. Datta, Sudip & Iskandar-Datta, Mai & Singh, Vivek, 2013. "Product market power, industry structure, and corporate earnings management," Journal of Banking & Finance, Elsevier, vol. 37(8), pages 3273-3285.
    5. Yang-Ming Chang & Hung-Yi Chen & Leonard F. S. Wang & Shih-Jye Wu, 2014. "Corporate Social Responsibility and International Competition: A Welfare Analysis," Review of International Economics, Wiley Blackwell, vol. 22(3), pages 625-638, August.
    6. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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