The relationship between corporate social responsibility and firm performance in China

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Abstract

The purpose of this study is to investigate the relationship between corporate social responsibility and firm performance in China. We have used the sample of A-share listed firms from Shenzhen and Shanghai Stock Exchange for the period 2011 to 2017. We used pooled ordinary least squares (OLS) regression as a baseline methodology. We find that corporate social responsibility has a significantly positive effect on firm performance in China. Our results suggest that Chinese companies having better financial performance undertake more CSR reporting. This paper contributes to the existing literature by investigating the effect of firm performance on CSR reporting of Chinese listed companies.

Keywords: Corporate Social Responsibility, Firm Performance, Return on Assets, China

Authors’ individual contribution: Conceptualization – M. J. R.; Methodology – M. J. R.; Software – Y. F.; Validation – Y. F.; Formal Analyses – Y. F.; Investigation – Y. F.; Resources – Y. F.; Data Curation – Y. F.; Writing – Y. F. and M. J. R.; Supervision – M. J. R.

JEL Classification: M14, M41

Received: 13.09.2019
Accepted: 29.11.2019
Published online: 02.12.2019

How to cite this paper: Rahman, M. J., & Fang, Y. (2019). The relationship between corporate social responsibility and firm performance in China. Risk Governance and Control: Financial Markets & Institutions, 9(4), 41-48.
https://doi.org/10.22495/rgcv9i4p4