CSR in China: Does Being Close to the Central or Local Government Matter?
Abstract
:1. Introduction
2. Theoretical Background
2.1. CSR and Distance
2.2. CSR in China
3. Hypotheses Development
4. Methodology
4.1. Sample and Data
4.2. Measures
4.2.1. Dependent Variable
4.2.2. Independent Variables
4.2.3. Moderator Variables
4.2.4. Control Variables
4.3. Methods
5. Results
6. Conclusions
Author Contributions
Funding
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Variable | Description |
---|---|
Dependent variables CSR score | CSR score (0–100) provided by the RKS database |
Key independent variables Distance to the Central Government | Natural logarithm of the straight-line distance between the company registration location and Beijing |
Distance to local government | Natural logarithm of the straight-line distance between the company registration location and the capital city |
Moderator Variables Foreign invested enterprises (FIEs) | Dummy variable that equals 1 if a firm has FIEs; zero otherwise |
Control Variables Firm size | Natural logarithm of total assets |
Firm age | Natural logarithmic value of the year from the incorporation of firms to the year of the survey (2009–2018) |
Board size | Natural logarithm of total number of directors |
Outside director | Number of independent directors/total number of directors |
ROA | Net income/total assets |
Top 10 share | The ratio of the top ten shareholders |
Leverage | Total liabilities/total assets |
N | Mean | SD | Min | Max | |
---|---|---|---|---|---|
1. CSR | 5147 | 38.717 | 12.259 | 0 | 86.713 |
2. Firm size | 5147 | 23.146 | 1.467 | 18.491 | 28.519 |
3. Firm age | 5147 | 2.745 | 0.397 | 0 | 3.638 |
4. Board size | 5147 | 2.203 | 0.211 | 1.386 | 2.890 |
5. Outside director | 5147 | 0.375 | 0.059 | 0.091 | 0.8 |
6. ROA | 5147 | 0.046 | 0.060 | −0.600 | 0.669 |
7. Top 10 share | 5147 | 59.288 | 16.345 | 12.707 | 98.588 |
8. Leverage | 5147 | 0.494 | 0.200 | 0.008 | 1.351 |
10. FIE | 5147 | 0.028 | 0.166 | 0 | 1 |
11. Distance to central government | 5147 | 2.613 | 2.521 | 0 | 8.006 |
12. Distance to local government | 5147 | 6.330 | 2.132 | 0 | 8.149 |
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | |
---|---|---|---|---|---|---|---|---|---|---|---|
1. CSR | 1 | ||||||||||
2. Firm size | 0.481 *** | 1 | |||||||||
3. Firm age | 0.056 *** | 0.064 *** | 1 | ||||||||
4. Board size | 0.116 *** | 0.195 *** | −0.008 | 1 | |||||||
5. Outside director | 0.066 *** | 0.134 *** | −0.089 *** | −0.398 *** | 1 | ||||||
6. ROA | −0.005 | −0.067 *** | −0.089 *** | 0.000 | −0.012 | 1 | |||||
7. Top 10 | 0.269 *** | 0.341 *** | −0.246 *** | 0.057 *** | 0.074 *** | 0.134 *** | 1 | ||||
8. Leverage | 0.128 *** | 0.512 *** | 0.103 *** | 0.088 *** | 0.058 *** | −0.400 *** | 0.036 ** | 1 | |||
9. FIE | −0.024 * | −0.096 *** | −0.008 | −0.040 *** | 0.026 * | 0.067 *** | 0.050 *** | −0.085 *** | 1 | ||
10. Central | −0.044 *** | 0.020 | 0.048 *** | 0.008 | 0.006 | −0.006 | −0.080 *** | 0.025 * | 0.001 | 1 | |
11. Local | −0.029 ** | 0.011 | −0.009 | 0.045 *** | −0.018 | −0.027 * | −0.042 *** | 0.007 | −0.025 * | 0.319 *** | 1 |
Variable | Model 1 | Model 2 | Model 3 | Model 4 | Model 5 | Model 6 |
---|---|---|---|---|---|---|
Firm size | 3.840 *** (28.80) | 3.859 *** (28.95) | 3.847 *** (28.85) | 3.857 ***(28.95) | 3.846 *** (28.85) | 3.859 *** (28.96) |
Firm age | −0.876 ** (−2.10) | −0.838 ** (−2.01) | −0.890 ** (−2.13) | −0.799 * (−1.92) | −0.886 ** (−2.12) | −0.809 * (−1.94) |
Board size | 4.242 *** (5.49) | 4.250 *** (5.50) | 4.300 *** (5.56) | 4.254 *** (5.51) | 4.304 *** (5.56) | 4.283 *** (5.54) |
Outside director | 5.383 ** (2.01) | 5.424 ** (2.02) | 5.348 ** (1.99) | 5.601 ** (2.09) | 5.324 ** (1.98) | 5.560 ** (2.07) |
ROA | −1.210 (−0.45) | −1.177 (−0.44) | −1.375 (−0.51) | −1.074 (−0.40) | −1.363 (−0.51) | −1.157 (−0.43) |
Top 10 share | 0.077 *** (7.78) | 0.074 *** (7.53) | 0.076 *** (7.70) | 0.075 *** (7.56) | 0.076 *** (7.69) | 0.074 *** (7.54) |
Leverage | −5.969 *** (−6.05) | −5.960 *** (−6.05) | −6.034 *** (−6.11) | −6.026 *** (−6.12) | −6.033 *** (−6.11) | −6.054 *** (−6.14) |
FIE | 0.328 (0.38) | 0.353 (0.41) | 0.296 (0.34) | 7.946 *** (3.03) | 1.330 (1.18) | 7.949 *** (3.04) |
H1: Central | −0.220 *** (−3.35) | −0.186 *** (−2.79) | −0.169 ** (−2.41) | |||
H2: Local | −0.103 * (−1.87) | −0.090 (−1.61) | −0.045 (−0.75) | |||
H3: Central × FIE | −1.200 *** (−3.07) | −1.132 *** (−2.77) | ||||
H4: Local × FIE | −0.470 (−1.42) | −0.207 (−0.60) | ||||
Constant | −60.659 *** (−18.74) | −59.711 *** (−18.39) | −60.550 *** (−18.71) | −60.053 *** (−18.50) | −60.570 *** (−18.71) | −60.069 *** (−18.50) |
N | 5147 | 5147 | 5147 | 5147 | 5147 | 5147 |
R2 | 0.345 | 0.347 | 0.346 | 0.348 | 0.346 | 0.348 |
F | 193.583 | 173.663 | 172.546 | 157.495 | 155.523 | 131.316 |
Year | YES | YES | YES | YES | YES | YES |
Industry | YES | YES | YES | YES | YES | YES |
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Zhang, Y.; Wang, P.; Kwon, J. CSR in China: Does Being Close to the Central or Local Government Matter? Sustainability 2021, 13, 8770. https://doi.org/10.3390/su13168770
Zhang Y, Wang P, Kwon J. CSR in China: Does Being Close to the Central or Local Government Matter? Sustainability. 2021; 13(16):8770. https://doi.org/10.3390/su13168770
Chicago/Turabian StyleZhang, Yongfeng, Peng Wang, and Jongwook Kwon. 2021. "CSR in China: Does Being Close to the Central or Local Government Matter?" Sustainability 13, no. 16: 8770. https://doi.org/10.3390/su13168770