Next Article in Journal
Do CSR Activities Increase Firm Value? Evidence from the Korean Market
Next Article in Special Issue
The Effect of Independent Director Reputation Incentives on Corporate Social Responsibility: Evidence from China
Previous Article in Journal
Impacts of Gratifications on Consumers’ Emotions and Continuance Use Intention: An Empirical Study of Weibo in China
Previous Article in Special Issue
Empirical Study towards Corporate Social Responsibility Practices and Company Financial Performance. Evidence for Companies Listed on the Bucharest Stock Exchange
Article Menu
Issue 9 (September) cover image

Export Article

Open AccessArticle
Sustainability 2018, 10(9), 3163; https://doi.org/10.3390/su10093163

Corporate Social Responsibility and Insider Trading: Evidence from China

School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
*
Authors to whom correspondence should be addressed.
Received: 30 July 2018 / Revised: 27 August 2018 / Accepted: 31 August 2018 / Published: 4 September 2018
Full-Text   |   PDF [259 KB, uploaded 4 September 2018]

Abstract

Corporate Social Responsibility (CSR) is the obligation of a company to pursue long-term goals, and is an important part of a sustainable society. It is related not only to the survival and sustainable development of the company, but also to the expectations of the public. CSR is an important way for companies to disclose non-financial information. Information disclosure can alleviate information asymmetry effectively, improve the quality of internal control, and affect the occurrence of insider trading. However, the existing research has paid less attention to the impact of non-financial information on CSR and insider trading, as well as the impact of the corporate nature and disclosure motivation on this relationship. This paper takes China’s 2011–2016 Shanghai and Shenzhen A-share listed companies as a sample to study the relationship between CSR and insider trading. The results show the following. (1) CSR and insider trading have a significant negative correlation. (2) From the perspective of the nature of the enterprise, the CSR of non-state-owned enterprises can significantly suppress the occurrence of insider trading, while the relationship is not significant for state-owned enterprises. (3) From the perspective of disclosure motivation, voluntary disclosure can significantly suppress the occurrence of insider trading. However, mandatory disclosure and semi-mandatory disclosure are not significant. The research in this paper is of great significance to encourage enterprises to fulfill their social responsibilities and improve the supervision of illegal insider trading. View Full-Text
Keywords: corporate social responsibility (CSR); insider trading; disclosure motivation corporate social responsibility (CSR); insider trading; disclosure motivation
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Lu, C.; Zhao, X.; Dai, J. Corporate Social Responsibility and Insider Trading: Evidence from China. Sustainability 2018, 10, 3163.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top