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Business groups and corporate social responsibility: Evidence from China

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  • Guo, Mengmeng
  • He, Luo
  • Zhong, Ligang

Abstract

This study investigates the impact of firms' business group affiliations on their performance in corporate social responsibility (CSR) in China. We find that firms with a dual-status of being a business group member and a state-owned enterprise (SOE) at the same time have weaker CSR performance. Our finding is consistent with the view that CSR engagement is a strategy for firms to pursue political legitimacy from the government and seek legitimacy in general from the public. The business group affiliation and the SOE identity together afford legitimacy to the firm and reduce its need to conduct CSR activities.

Suggested Citation

  • Guo, Mengmeng & He, Luo & Zhong, Ligang, 2018. "Business groups and corporate social responsibility: Evidence from China," Emerging Markets Review, Elsevier, vol. 37(C), pages 83-97.
    • Handle: RePEc:eee:ememar:v:37:y:2018:i:c:p:83-97
    DOI: 10.1016/j.ememar.2018.05.002
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