Ownership Reduction in State-Owned Enterprises and Corporate Social Responsibility: Perspective from Secondary Privatization in China
School of Management, Xi’an Jiaotong University, Xi’an 710000, China
Division of Computational Mathematics and Engineering, Institute for Computational Science, Ton Duc Thang University, Ho Chi Minh City 700000, Vietnam
Faculty of Finance and Banking, Ton Duc Thang University, Ho Chi Minh City 700000, Vietnam
Department of Economics and Business, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania
Department of Management Sciences, COMSATS University Islamabad (CUI), Islamabad 44000, Pakistan,
Author to whom correspondence should be addressed.
Sustainability 2019, 11(4), 1008; https://doi.org/10.3390/su11041008
Received: 30 December 2018 / Revised: 21 January 2019 / Accepted: 6 February 2019 / Published: 15 February 2019
(This article belongs to the Special Issue Comparative Corporate Social Responsibility (CSR) and Sustainable Development Goals (SDGs))
As an emerging economy, China modernized its economy via split-share structure reform. This reform changed the nature of ownership in state-owned enterprises (SOEs). Following this reform, we investigated the research question concerning how reductions in state ownership affect the corporate social responsibility (CSR) performance of listed firms. This study tests the hypotheses using data of Chinese listed firms between 2010 and 2015. Applying multiple regressions, we found a negative association between state reductions and CSR performance. We contribute to the existing literature by providing empirical evidence that those firms which reduce state holdings are not taking CSR activities seriously. Our study also sheds light on the worthiness and prominent status of large state owners of SOEs, as they are more likely to engage in social activities. This study provides fruitful implications for policy-makers and practitioners about state holdings, which may either hinder or enhance the corporate social performance.