Corporate Social Responsibility Reporting, State Ownership, and Corporate Performance in China: Proof from Longitudinal Data of Publicly Traded Enterprises from 2006 to 2020
This paper offered the primary methodical proof on how Corporate Social Responsibility (CSR) reporting related to enterprise earnings in listed firms in China in light of most evidence focusing on cross-sectional data or data in a short span of time. Using full economic and business panel data on China’s publicly listed enterprises from 2006 to 2020 over two decades in the China Stock Market & Accounting Research database, we found initial evidence of significant direct relations between CSR reporting and firm corporate performance in both state-owned and privately-owned firms over this period, supporting the stakeholder theory. Results also revealed that state-owned enterprises performed as well as private enterprises in the current period. But private enterprises performed better than state-owned enterprises in the subsequent years. Moreover, the release of social responsibility reports had the more significant impact on the financial performance of state-owned and private enterprises in the current period than in the subsequent periods. Specifically, CSR release was not significantly associated to the financial performance of state-owned enterprises on the lag of the first, second, and third periods. But it had an impact on the lag of the first, second, and third periods among private enterprises. Such findings suggested that CSR reporting helped improve the corporate financial performance of state-owned and private enterprises in the current period, but this kind of effect was more significant among private enterprises in the lag periods.Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 266
 D. Hackston, M. J. Milne, “Some determinants of social and environmental disclosures and New Zealand companies,” Accounting, Auditing & Accountability Journal, 9 (1), pp. 77-108, 1996.
 J. Elkington, “Triple bottom-line reporting: looking for balance,” Australian CPA, 69 (2), pp. 18-21, 1999.
 L. Tang, H. Li, “Corporate social responsibility communication of Chinese and global corporations in China,” Public Relations Review, 35 (3), pp. 199-212, 2009.
 A. McWilliams, D. Siegel, “Corporate social responsibility: a theory of the firm perspective,” Academy of Management Review, 26 (1), pp. 117-127, 2001.
 M. Ewing, L. Windisch, “Contemporary corporate social responsibility in China: an extension of Confucian philosophy?” Discussion paper no. 44, Monash University, Melbourne, 2007.
 C. Baughn, N. Bodie, J. McIntosh, “Corporate social and environmental responsibility in Asian countries and other geographic regions,” Corporate Social Responsibility and Environmental Management, 14 (4), pp. 189-205, 2007.
 C. Lattermann, M. Fetscherin, I. Alon, S. Li, “CSR communication intensity in Chinese and Indian multinational companies,” Corporate Governance: An International Review, 17 (4), pp. 426-443, 2009.
 S. Li, S. H. Park, S. Li, “The great leap forward: the transition from relation-based governance to rule-based governance,” Organizational Dynamics, 33(1), pp.63-78, 2004.
 W. Chapple, J. Moon, “Corporate social responsibility (CSR) in Asia: a seven-country study of CSR web site reporting,” Business and Society, 44 (4), pp. 415-441, 2005.
 R. Roman, C. Hayibor, B. A. Agle, “The relationship between social and financial performance,” Business and Society, 38, pp. 109-125, 1999.
 W. G. Simpson, T. Kohers, “The link between corporate social and financial performance: evidence from the banking industry,” Journal of Business Ethics, 35(2), pp. 97-109, 2002.
 B. M. Ruf, K. Muralidhar, R. M. Brown, J. K. Paul, “An empirical investigation of the relationship between change in corporate social performance and financial performance: a stakeholder theory perspective,” Journal of Business Ethics, 32(2), pp. 143 -156, 2001.
 S. Wen, Y. Fang, “Empirical research on the relationship between corporate social responsibility and financial performance – panel data analysis from the perspective of stakeholders,” China Industrial Economics, 10, pp. 150-160, 2008.
 D. S. Bortree, “The impact of green initiatives on environmental legitimacy and admiration of the organization,” Public Relations Review, 35(2), pp.133-135, 2009.
 C. de Villiers, C. J. van Staden, “Can less environmental disclosure have a legitimizing effect? Evidence from Africa,” Organizations and Society, 31(8), pp. 763-781, 2006.
 N. Nakajima, “Green advertising and green public relations as integration propaganda,” Bulletin of Science, Technology and Society, 21 (5), pp. 334-348.
 R. W. Roberts, “Determinants of corporate social responsibility disclosure: an application of stakeholder theory,” Accounting, Organizations and Society, 17(6), pp.595-612.
 P. Bansal, I. Clelland, “Talking trash: legitimacy, impression management, and the unsystematic risk in the context of the natural environment,” Academy of Management Journal, 47(1), pp. 93-103.
 G. O.Donovain, “Environmental disclosure in the annual report: extending the applicability and predictive power of legitimacy theory,” Accounting, Auditing & Accountability Journal, 15(3), pp. 344-371.