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Do Peer Firms Affect Firm Corporate Social Responsibility?

Author

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  • Shenggang Yang

    (The College of Finance and Statistics, Hunan University, Changsha 410006, China)

  • Heng Ye

    (The College of Finance and Statistics, Hunan University, Changsha 410006, China)

  • Qi Zhu

    (Guotai Junan Securities Co., Ltd., Shanghai 200120, China
    The School of Economics, Fudan University, Shanghai 200433, China)

Abstract

Peer-firm strategies are a critical factor for corporate finance, and corporate social responsibility (CSR) is the main trend for evaluating the behavior of firms. On the basis of the connection between peer strategy and CSR, this paper explores the CSR strategies employed by a sample of Chinese firms during the 2008–2015 period. Our two main empirical findings are as follows. First, the CSR strategies of firms have a positive effect on their CSR behavior. Second, when there is the CSR gap between firms and peer firms, firms will feel the pressure from stakeholders and the public and improve the level of CSR performance. Our paper enriches empirical research on the CSR behavior of Chinese firms.

Suggested Citation

  • Shenggang Yang & Heng Ye & Qi Zhu, 2017. "Do Peer Firms Affect Firm Corporate Social Responsibility?," Sustainability, MDPI, vol. 9(11), pages 1-7, October.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:11:p:1967-:d:116832
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