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Employee-related corporate social responsibilities and corporate innovation: Evidence from China

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  • Liu, Baohua
  • Sun, Pei-Yu
  • Zeng, Yongliang

Abstract

This study investigates corporate innovation from the perspective of a firm’s employee-related corporate social responsibility (CSR) in China. We find that more employee-related CSR generates more innovation success. The results suggest that a firm’s incentive to offer better employee-related CSR is an important determinant of its innovation. The positive effect is more pronounced when employees’ input into innovation is more important, and when free-riding among employees is stronger. Additional tests indicate that more employee-related CSR spurs innovation through employee stability and innovation efficiency. Our results hold up to a variety of model specifications and endogeneity issues.

Suggested Citation

  • Liu, Baohua & Sun, Pei-Yu & Zeng, Yongliang, 2020. "Employee-related corporate social responsibilities and corporate innovation: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 357-372.
    • Handle: RePEc:eee:reveco:v:70:y:2020:i:c:p:357-372
    DOI: 10.1016/j.iref.2020.07.008
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