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How Does Transportation Infrastructure Improve Corporate Social Responsibility? Evidence from High-Speed Railway Openings in China

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  • Lei Zheng

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Xuemeng Guo

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Libin Zhao

    (Accounting College, Wuhan Textile University, Wuhan 430077, China)

Abstract

The socioeconomic impacts of infrastructure investment are worth examining in both academic and practical areas. Regarding Chinese high-speed railway construction, the existing literature mainly focuses on the macro-economic level consequences of high-speed railway openings, leaving the micro-economic level impacts commonly untested. Using archival data of Chinese listed companies from 2009 to 2018 and the difference-in-difference (DID) approach, this paper examines the influential effect of Chinese high-speed railway openings on corporate social responsibility (CSR) performance. Empirical results show that high-speed railway openings can significantly improve Chinese listed companies’ CSR performance, and this positive effect is more salient when companies are experiencing lower information transparency. Mediating effect tests illustrate that the increased investor site visits caused by high-speed railway openings are one internal mechanism behind the main connection. Overall, from a micro-level perspective, this article provides additional evidence on the socioeconomic impact of transportation infrastructure investments.

Suggested Citation

  • Lei Zheng & Xuemeng Guo & Libin Zhao, 2021. "How Does Transportation Infrastructure Improve Corporate Social Responsibility? Evidence from High-Speed Railway Openings in China," Sustainability, MDPI, vol. 13(11), pages 1-23, June.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:11:p:6455-:d:569856
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    Cited by:

    1. Tianjiao Zhao & Xiang Xiao & Qinghui Dai, 2021. "Transportation Infrastructure Construction and High-Quality Development of Enterprises: Evidence from the Quasi-Natural Experiment of High-Speed Railway Opening in China," Sustainability, MDPI, vol. 13(23), pages 1-23, December.
    2. Yan Yu, 2022. "Analyst Earnings Forecast Optimism during the COVID-19 Pandemic: Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-16, October.
    3. Sining Zhu & Zhou Zhou & Ran Li & Wenxing Li, 2022. "Impact of High-Speed Rail Construction on the Environmental Sustainability of China’s Three Major Urban Agglomerations," Sustainability, MDPI, vol. 14(5), pages 1-24, February.
    4. Li, He & Lu, Juan & Guo, Feiyu, 2022. "High speed rail and corporate social responsibility performance: Analysis of intra-regional location and inter-regional spillover," Transport Policy, Elsevier, vol. 128(C), pages 65-75.

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