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Do CSR Ratings Converge in China? A Comparison Between RKS and Hexun Scores

Author

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  • Ma Zhong

    (School of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Rong Xu

    (School of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Xinyi Liao

    (School of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Shuangli Zhang

    (School of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

Abstract

Rankings (RKS) and Hexun are the two most widely used corporate social responsibility (CSR) ratings in research on CSR in China’s capital market. These scores are used as a proxy for CSR performance and disclosure quality. However, research is lacking on the validity of measuring CSR performance and disclosure quality, as well as the convergent validity between these scores. In this paper, a comparative and quantitative analysis was performed for the period 2010–2017, and the following results were obtained: (1) Based on a comparison of the rating methods, information sources, and other factors, RKS is more suitable for measuring the CSR disclosure quality, while Hexun is more suitable for measuring the CSR performance; (2) based on a Spearman correlation analysis, the convergent validity between these two scores is very low, particularly after 2013; and (3) the sub-indicator weights of the RKS system always maintain a high stability, whereas those of the Hexun system suffer from severe fluctuations starting in 2013.

Suggested Citation

  • Ma Zhong & Rong Xu & Xinyi Liao & Shuangli Zhang, 2019. "Do CSR Ratings Converge in China? A Comparison Between RKS and Hexun Scores," Sustainability, MDPI, vol. 11(14), pages 1-20, July.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:14:p:3921-:d:249519
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