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The Determinants of Virtue: Modelling Changes in the CSR Ratings of Chinese Firms

Author

Listed:
  • Wu, Shuangqi

    (University of Nottingham)

  • Appleton, Simon

    (University of Nottingham)

  • Song, Lina

    (University of Nottingham)

  • Wang, Jinmin

    (University of Nottingham)

Abstract

Most empirical studies on Corporate Social Responsibility (CSR) use cross-sectional data or case studies, making causality hard to establish. We overcome this limitation by using panel data on Chinese firms. We find no effect of last year's profits on CSR ratings, although their negative contemporaneous relation suggests a trade-off. Managerial shareholdings reduce CSR ratings while rising wages and employment are the main drivers of increasing CSR ratings. This suggests the CSR agenda aligns with the interests of labour, but not capital. However, the positive effect of Tobin's Q may indicate CSR is associated with intangibles of value to a firm.

Suggested Citation

  • Wu, Shuangqi & Appleton, Simon & Song, Lina & Wang, Jinmin, 2017. "The Determinants of Virtue: Modelling Changes in the CSR Ratings of Chinese Firms," IZA Discussion Papers 11153, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11153
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    References listed on IDEAS

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    Keywords

    firms; corporate social responsibility; China;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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