Corporate Social Responsibility Rating, Corporate Governance, and Financial Distress: Evidence from China
Corporate Social Responsibility Rating, Corporate Governance, and Financial Distress: Evidence from China
Chi Guotai(Dalian University of Technology); Hassan Khalil(Dalian University of Technology); Chayma Erraja(Dalian University of Technology)
52권 1호, 6~34쪽
초록
This study investigates the relationship between CSR and financial distress in China, using the O-score and a Chinese sample of 4,202 observations between 2011 and 2017. The relationship is accordingly, more pronounced in weak corporate governance firms with low levels of institutional shareholders and free cash flow (FCF) and among non-state-owned enterprises and mandatory CSR disclosure firms. The findings are robust to endogeneity through robustness checks and the 2013 Sichuan Lushan earthquake as an exogenous shock to CSR. Ultimately, the study helps investors, shareholders, and policymakers appreciate the impact of CSR dimensions.
Abstract
This study investigates the relationship between CSR and financial distress in China, using the O-score and a Chinese sample of 4,202 observations between 2011 and 2017. The relationship is accordingly, more pronounced in weak corporate governance firms with low levels of institutional shareholders and free cash flow (FCF) and among non-state-owned enterprises and mandatory CSR disclosure firms. The findings are robust to endogeneity through robustness checks and the 2013 Sichuan Lushan earthquake as an exogenous shock to CSR. Ultimately, the study helps investors, shareholders, and policymakers appreciate the impact of CSR dimensions.
- 발행기관:
- 한국증권학회
- 분류:
- 경영학