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Home Bias and Corporate Environmental Social Responsibility

Author

Listed:
  • Xing Rong

    (School of Insurance, Southwestern University of Finance and Economics, Chengdu 611130, China)

  • Bingjie Song

    (School of Accounting, Southwestern University of Finance and Economics, Chengdu 611130, China)

  • Tingting Zhang

    (School of Insurance, Southwestern University of Finance and Economics, Chengdu 611130, China)

  • Kai Liu

    (School of Mathematical and Computational Sciences, University of Prince Edward Island, Charlottetown, PE C1A 4P3, Canada
    Big Data Research Lab, University of Waterloo, Waterloo, ON N2L 3G1, Canada)

Abstract

This paper analyzes the impact of executives’ hometown identification on corporate environmental social responsibility (CESR) using a sample of Chinese A-share-listed companies from 2007 to 2018. It finds that: the CESR scores of companies are higher when executives work in their hometowns, indicating that executives’ hometown identification significantly improves the fulfillment of CESR; mechanism tests show that the above relationship is more significant in regions with superior environmental quality, indicating that executives take CESR more seriously in their hometowns more due to social pressure; further tests found that executive characteristics, such as executive type and age, have a regulating effect on this relationship. In addition, the nature of property rights of listed companies also affects executives’ hometown identification. Executives of state-owned enterprises have a stronger hometown identification, which enhances the fulfillment of CESR to a higher extent. In the context of the micro level of the enterprise, this paper provides positive evidence that an informal system, named as “hometown identity”, can enhance the performance of CESR and the pressure effect implicitly behind the social network, which enriches and expands the research related to CESR fulfillment.

Suggested Citation

  • Xing Rong & Bingjie Song & Tingting Zhang & Kai Liu, 2021. "Home Bias and Corporate Environmental Social Responsibility," Sustainability, MDPI, vol. 13(11), pages 1-20, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:11:p:5860-:d:560538
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    References listed on IDEAS

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    Cited by:

    1. Ruiqian Li & Ramakrishnan Ramanathan & Guanghua Xu, 2023. "The impact of penalties for environmental violations on corporate environmental responsibility," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1343-1363, June.

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