Original scientific paper
https://doi.org/10.1080/1331677X.2021.1889392
Does share pledging promote or impede corporate social responsibility? An examination of Chinese listed firms
Weiping Li
Jiashun Huang
Chang Shi
Xue Yang
Abstract
By employing the Chinese listed firm’s data from 2010 to 2017,
this study explores the impact of share pledging on firms’ corporate social responsibility (CSR) performance. Empirical results indicate a negative relationship between share pledging and CSR
performance. This effect is robust after using alternative measures
and different regression methods, and also consistent after tackling the endogenous issues. Furthermore, we find that risk-taking
and agency cost are two possible underlying mechanisms
through which share pledging reduces CSR. In addition, CSR
reduction caused by share pledging leads to poorer economic
performance and lower market value of firms.
Keywords
Share pledging; Agency cost; Corporate social responsibility
Hrčak ID:
301827
URI
Publication date:
31.3.2023.
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