The Real Effects of Mandatory Corporate Social Responsibility Reporting in China

• 成果类型: Article
• 署名作者: Lu, Tong; Sivaramakrishnan, Konduru; Wang, Yanyan; Yu, Lisheng
• 署名单位: University of Houston System; University of Houston; Rice University; Xiamen University
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.13334
• 发表日期: 2021
• 页码: 1493-1516
• 关键词: MANDATORY DISCLOSURE; Real effects; Corporate social responsibility; non‐ state‐ owned enterprises; non‐ core activities

摘要

We investigate the real effects of corporate social responsibility (CSR) reporting regulation enacted in China in 2008 covering both state-owned enterprises (SOEs) and non-state-owned enterprises (NSOEs). As the CSR reporting requirement applies only to select firms, the regulation presents a unique setting that provides us with a suitable control sample of firms not subject to the regulation. Using a difference-in-differences approach, we document that relative to firms that are not affected by the regulation, NSOEs and SOEs with low state ownership subject to the mandate are associated with increases in CSR expenditures. Moreover, the real effects manifest in non-core initiatives for these firms, whereas they manifest in core operating activities for SOEs with high state ownership. Finally, the effects of the mandatory CSR reporting on profitability and shareholder value are negative.