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Corporate social responsibility, product market competition, and product market performance

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  • Han, Wu
  • Zhuangxiong, Yu
  • Jie, Li

Abstract

Using the data of Chinese listed firms from 2008 to 2014, we explore how product market competition affects the impact of corporate social responsibility (CSR) on firms' product market performance and the underlying mechanism. We document that CSR significantly decreases firms' product market performance only in noncompetitive industries, and the evidence is significant only for non-state-owned firms, primarily through the channel of weaker debt financing capability. Better corporate governance can effectively alleviate the negative impact of CSR on firms’ product market performance in noncompetitive industries.

Suggested Citation

  • Han, Wu & Zhuangxiong, Yu & Jie, Li, 2018. "Corporate social responsibility, product market competition, and product market performance," International Review of Economics & Finance, Elsevier, vol. 56(C), pages 75-91.
    • Handle: RePEc:eee:reveco:v:56:y:2018:i:c:p:75-91
    DOI: 10.1016/j.iref.2018.03.019
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    Cited by:

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    3. Kim, Taeyeon & Kim, Hyun-Dong & Park, Kwangwoo, 2020. "CEO inside debt holdings and CSR activities," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 508-529.
    4. Van Ha Nguyen & Frank W. Agbola & Bobae Choi, 2022. "Does Corporate Social Responsibility Enhance Financial Performance? Evidence from Australia," Australian Accounting Review, CPA Australia, vol. 32(1), pages 5-18, March.
    5. Yang Zhang & Xinxin Zhang, 2022. "The Threshold Effect of Executive Compensation on Corporate Environmental Responsibility: Based on the Moderating Effect of Industry Competition," Sustainability, MDPI, vol. 14(14), pages 1-24, July.
    6. Wei Wang & Xue-Zhou Zhao & Feng-Wen Chen & Chia-Huei Wu & Sangbing Tsai & Jiangtao Wang, 2019. "The Effect of Corporate Social Responsibility and Public Attention on Innovation Performance: Evidence from High-polluting Industries," IJERPH, MDPI, vol. 16(20), pages 1-20, October.
    7. Chao, Angela C. & Hong, Lucheng, 2019. "Corporate Social Responsibility Strategy, Environment and Energy Policy," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 311-317.
    8. Chintrakarn, Pandej & Jiraporn, Pornsit & Treepongkaruna, Sirimon, 2021. "How do independent directors view corporate social responsibility (CSR) during a stressful time? Evidence from the financial crisis," International Review of Economics & Finance, Elsevier, vol. 71(C), pages 143-160.
    9. Li, Yiping & Zheng, Lanxing & Xie, Chang & Fang, Jiming, 2024. "Big data development and enterprise ESG performance: Empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 742-755.
    10. Agustina, Lidya, 2021. "Does financial performance moderate the effect of CEO characteristics and stakeholder influence on corporate social responsibility in Indonesia?," Technium Business and Management, Technium Science, vol. 2(1), pages 13-29.
    11. Çiğdem Vural‐Yavaş, 2021. "Economic policy uncertainty, stakeholder engagement, and environmental, social, and governance practices: The moderating effect of competition," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 82-102, January.
    12. Yi Wang & Junke Feng & Nosheena Yasir & Yu Bai, 2022. "The Impact of Political Incentives Received by Key Local Officials on Enterprises’ Green Innovations for the Development and Construction of Ecological Civilization in China," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    13. Yu, Yin & Chi, Jing, 2021. "Political embeddedness, media positioning and corporate social responsibility: Evidence from China," Emerging Markets Review, Elsevier, vol. 47(C).

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    More about this item

    Keywords

    Corporate social responsibility; Product market competition; Product market performance;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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