Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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CSR Practices and Corporate Financial Performance: Evidence from China

  • Meng, Lamei (Division of Accounting, Zhengzhou University of Industrial Technology) ;
  • Byun, Hae-Young (Division of Business Administration and Accounting, Kangwon National University)
  • Received : 2022.08.31
  • Accepted : 2022.09.28
  • Published : 2022.09.30
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Abstract

Purpose - The purpose of this paper is to explore the relationship between corporate social responsibility (CSR) and corporate present and future value. Design/methodology/approach - This paper intends to prove the relationship between CSR and corporate value once again by selecting A-share companies listed on the China Shenzhen Stock Exchange and Shanghai Stock Exchange from 2010 2017. This paper also examines the effect of five dimensions of CSR on corporate value in China. Findings - Empirical evidence shows that CSR is conducive to corporate value. The fulfillment of social responsibilities improves firm value in the future. Further, the regression results show that the social responsibility of the non-state-owned enterprise (Non-SOEs) group has a more significant effect on corporate financial performance than on the state-owned enterprise (SOEs) group. Research implications or Originality - This study has limitations. First, the grouping is only divided into two groups of SOEs and non-SOEs, and we did not consider foreign investments, that is, foreign-funded enterprises, for the comparative analysis. Second, only the linear relationship between CSR and corporate value was tested. In the future, we must determine whether there exists a nonlinear relationship between the two key concepts. Finally, there exists no research on CSR and corporate value by specific industries. Thus, the relationship between the five dimensions of CSR and corporate value should be investigated by specific industries.

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