Original scientific paper
https://doi.org/10.1080/1331677X.2021.2019597
Assessment of parent-subsidiary companies’ geographical distance effect on corporate social responsibility: a case of A-share listed companies
Fang Su
Xiufang Liang
Sha Cai
Shaojian Chen
Shah Fahad
Abstract
Corporate Social Responsibility (CSR) is considered as an important business agenda in the current age. Based on the data of Ashare listed companies from 2010 to 2020, this study used a
fixed-effect model, heterogeneity analysis and intermediary effect
test to investigate the relationship between parent-subsidiary
geographical distance and CSR. Our study findings revealed that
the parent-subsidiary companies’ geographic distance has a negative effect on CSR. Results of our study further indicated that the
effect was more stronger for non-state-owned enterprises and the
firms in the eastern region. Findings of our study also reported
that the enterprise internal control had an obvious mediating
effect in the association among parent-subsidiary companies’ geographic distance and CSR. The government needs to reinforce
legal construction, actively guide enterprises to perform CSR
through incentive measures, and implement special supervision
on enterprises with a large number of subsidiaries. This study not
only enriches the literature on the factors influencing corporate
social responsibility but also provides a theoretical perspective
and important ideas for the effective implementation of regional
diversification and the improvement of CSR levels in practice.
Keywords
Parent-subsidiary company; geographic distance; corporate social responsibility; state-owned enterprises; corporate governance
Hrčak ID:
302781
URI
Publication date:
31.3.2023.
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