Title

Corporate social responsibility reporting and firm performance : evidence from China

Document Type

Journal article

Source Publication

Journal of Management and Governance

Publication Date

9-2016

Volume

20

Issue

3

First Page

503

Last Page

523

Publisher

Springer New York LLC

Keywords

Corporate social responsibility, Accounting and market-based firm performance, Sustainability, China

Abstract

A series of product safety and child labor scandals in the mid-2000s aroused global concerns over business ethics and corporate social responsibility (CSR) in China. The general public expects companies to be socially responsible and to look beyond the maximizing of profits. In this study, we examine the relationship between the issuance of CSR reports and performance, in terms of accounting income, market return, and growth by firms listed in China in 2008–2009. We find that the historical performance of firms has significant and positive effects on the issuance of standalone CSR reports. There is also a positive correlation between current CSR disclosures and subsequent performance. Finally, we find that corporate donations are positively associated with improved performance in the following year. Our results support the view that CSR is a useful business strategy even in a developing country such as China. We call for government authorities in emerging markets to advocate CSR practices and for the market participants to change their perception of and attitude towards CSR.

DOI

10.1007/s10997-015-9309-1

Print ISSN

13853457

E-ISSN

1572963X

Publisher Statement

Copyright © Springer Science+Business Media New York 2015

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Cheng, S., Lin, K. Z., & Wong, W. (2016). Corporate social responsibility reporting and firm performance: Evidence from China. Journal of Management and Governance, 20(3), 503-523. doi: 10.1007/s10997-015-9309-1