Abstract
Purpose: This paper aims to examine the relationship between ownership type and the likelihood of publication of a corporate social responsibility (CSR) report. Design/methodology/approach: Drawing on stakeholder salience theory, the probit model is used for a sample of 1,839 Chinese listed firms to study how different types of owners influence firm CSR engagement. Findings: The analysis reveals that the Chinese stock exchanges exert a positive influence on the likelihood of a firm producing a CSR report, an effect which is more significant in state-owned enterprises (SOEs). Foreign investors lead to a greater likelihood of publication of a CSR report, though this effect is weaker in SOEs. In contrast, the holdings of state and domestic institutional investors are broadly neutral. Practical implications: The study helps corporate managers to recognise how particular types of shareholders will value their efforts regarding CSR activities and disclosure and also assists policymakers in improving the level of CSR disclosure through the development of new policy. Social implications: Apposite CSR disclosure enhances trust and facilitates the shared values on which to build a more cohesive society. Originality/value: The novelty of this study is that it addresses the effect of institutional investors on Chinese firm CSR engagement and thus provides an important insight for firms, investors and other stakeholders into the interplay of portfolio investment and CSR.
| Original language | English |
|---|---|
| Pages (from-to) | 8-21 |
| Number of pages | 14 |
| Journal | Accounting Research Journal |
| Volume | 31 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 1 Jan 2018 |
| Externally published | Yes |
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Bibliographical note
Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.Keywords
- CSR
- Foreign investors
- Institutional investors
- SOEs
- Stakeholder salience theory
- Stock exchange
ASJC Scopus subject areas
- Accounting
- Finance
Cite this
Ownership influence and CSR disclosure in China. / Hu, Yuan Yuan; Zhu, Yanhui; Tucker, Jon; Hu, Yuxiao.
In: Accounting Research Journal, Vol. 31, No. 1, 01.01.2018, p. 8-21.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Ownership influence and CSR disclosure in China
AU - Hu, Yuan Yuan
AU - Zhu, Yanhui
AU - Tucker, Jon
AU - Hu, Yuxiao
N1 - Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.
PY - 2018/1/1
Y1 - 2018/1/1
N2 - Purpose: This paper aims to examine the relationship between ownership type and the likelihood of publication of a corporate social responsibility (CSR) report. Design/methodology/approach: Drawing on stakeholder salience theory, the probit model is used for a sample of 1,839 Chinese listed firms to study how different types of owners influence firm CSR engagement. Findings: The analysis reveals that the Chinese stock exchanges exert a positive influence on the likelihood of a firm producing a CSR report, an effect which is more significant in state-owned enterprises (SOEs). Foreign investors lead to a greater likelihood of publication of a CSR report, though this effect is weaker in SOEs. In contrast, the holdings of state and domestic institutional investors are broadly neutral. Practical implications: The study helps corporate managers to recognise how particular types of shareholders will value their efforts regarding CSR activities and disclosure and also assists policymakers in improving the level of CSR disclosure through the development of new policy. Social implications: Apposite CSR disclosure enhances trust and facilitates the shared values on which to build a more cohesive society. Originality/value: The novelty of this study is that it addresses the effect of institutional investors on Chinese firm CSR engagement and thus provides an important insight for firms, investors and other stakeholders into the interplay of portfolio investment and CSR.
AB - Purpose: This paper aims to examine the relationship between ownership type and the likelihood of publication of a corporate social responsibility (CSR) report. Design/methodology/approach: Drawing on stakeholder salience theory, the probit model is used for a sample of 1,839 Chinese listed firms to study how different types of owners influence firm CSR engagement. Findings: The analysis reveals that the Chinese stock exchanges exert a positive influence on the likelihood of a firm producing a CSR report, an effect which is more significant in state-owned enterprises (SOEs). Foreign investors lead to a greater likelihood of publication of a CSR report, though this effect is weaker in SOEs. In contrast, the holdings of state and domestic institutional investors are broadly neutral. Practical implications: The study helps corporate managers to recognise how particular types of shareholders will value their efforts regarding CSR activities and disclosure and also assists policymakers in improving the level of CSR disclosure through the development of new policy. Social implications: Apposite CSR disclosure enhances trust and facilitates the shared values on which to build a more cohesive society. Originality/value: The novelty of this study is that it addresses the effect of institutional investors on Chinese firm CSR engagement and thus provides an important insight for firms, investors and other stakeholders into the interplay of portfolio investment and CSR.
KW - CSR
KW - Foreign investors
KW - Institutional investors
KW - SOEs
KW - Stakeholder salience theory
KW - Stock exchange
UR - http://www.scopus.com/inward/record.url?scp=85047326556&partnerID=8YFLogxK
U2 - 10.1108/ARJ-01-2017-0011
DO - 10.1108/ARJ-01-2017-0011
M3 - Article
VL - 31
SP - 8
EP - 21
JO - Accounting Research Journal
JF - Accounting Research Journal
SN - 1030-9616
IS - 1
ER -