CSR and Long-Term Corporate Performance: The Moderating Effects of Government Subsidies and Peer Firm’s CSR
Abstract
:1. Introduction
2. Literature Review and Hypotheses Development
2.1. Corporate Social Responsibility
2.2. Institutional Theory
2.3. CSR and Firm Performance
- (1)
- CSR affects the competitive mechanism of enterprises to improve performance.
- (2)
- CSR will consume a lot and have a negative impact on the improvement of enterprise performance.
2.4. The Moderating Role of Peer Firms’ CSR
2.5. The Moderating Role of Government Subsidies
- (1)
- Government subsidies will impact the competition mechanism of firms, thus, affecting firm performance.
- (2)
- Government subsidies affect the consumption mechanism of firms, which impacts firm performance.
3. Methods
3.1. Independent Variables
3.2. Dependent Variables
3.3. Moderators
3.4. Control Variable
4. Analyses
4.1. Analysis and Results
4.2. Robustness Checks
5. Conclusions and Discussion
5.1. Theoretical Implications
5.2. Practical Implications
5.3. Limitations and Future Research
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Indicators | Variable Code | Definitions |
---|---|---|
Independent variable | ||
Enterprise performance | roe | Ratio of net income to net assets |
Dependent variable | ||
CSR | CSR | The actual score of each company in Hexun |
Moderator variables | ||
Peer firms’ CSR | Psrl | Average social responsibility score of all companies in the industry in which the focal company is located in a given year, excluding the focal company |
Government Subsidy | sub | The total amount of government subsidies actually obtained by enterprises |
Control variables | ||
Firm Age | age | the number of years since the company was founded |
Firm Size | lnsize | Natural logarithm of total corporate assets |
Firm Nature | state | The value is 1 when the enterprise is a state-owned enterprise, otherwise it is 0 |
Ownership Concentration | shrcr | Percentage of shares owned by the top 10 shareholders |
Variable | Mean | SD | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
---|---|---|---|---|---|---|---|---|---|---|---|
1. roe | 6.977 | 9.695 | 1 | ||||||||
2. state | 0.397 | 0.489 | −0.067 *** | 1 | |||||||
3. lnsize | 22.08 | 1.288 | 0.077 *** | 0.391 *** | 1 | ||||||
4. lnage | 1.946 | 0.943 | −0.108 *** | 0.470 *** | 0.436 *** | 1 | |||||
5. Shrcr | 59.67 | 15.33 | 0.199 *** | −0.100 *** | 0.088 *** | −0.442 *** | 1 | ||||
6. slack | 2.903 | 4.946 | 0.038 *** | −0.190 *** | −0.264 *** | −0.292 *** | 0.122 *** | 1 | |||
7. CSR | 26.50 | 17.03 | 0.398 *** | 0.140 *** | 0.294 *** | 0.055 *** | 0.122 *** | −0.001 | 1 | ||
8. Psrl | 26.09 | 5.987 | 0.087 *** | 0.156 *** | 0.092 *** | 0.080 *** | 0.024 *** | 0.005 | 0.266 *** | 1 | |
9. sub | 15.81 | 1.898 | 0.076 *** | 0.173 *** | 0.417 *** | 0.095 *** | 0.056 *** | −0.103 *** | 0.217 *** | 0.125 *** | 1 |
Variables | M1 | M2 | M3 | M4 | M5 |
---|---|---|---|---|---|
CSR | 1.083 *** (0.011) | 1.583 *** (0.047) | 1.496 *** (0.088) | 1.887 *** (0.095) | |
CSR2 | −0.012 *** (0.000) | −0.019 *** (0.001) | −0.020 *** (0.001) | −0.026 *** (0.001) | |
Psrl | 0.266 *** (0.028) | 0.025 *** (0.028) | |||
CSR × Psrl | 0.020 *** (0.002) | −0.019 *** (0.002) | |||
CSR2 × Psrl | 0.0003 *** (0.000) | 0.0002 *** (0.000) | |||
sub | 0.401 *** (0.084) | 0.331 *** (0.085) | |||
CSR × sub | −0.025 *** (0.006) | −0.019 * (0.006) | |||
CSR2 × sub | 0.001 *** (0.000) | 0.0004 ** (0.0001) | |||
State | −0.845 *** (0.146) | −0.763 *** (0.116) | −0.767 *** (0.116) | −0.800 *** (0.116) | −0.787 *** (0.116) |
lnsize | 0.807 *** (0.058) | 0.140 ** (0.047) | 0.149 ** (0.047) | 0.021 (0.050) | −0.021 *** (0.050) |
lnage | −0.550 *** (0.079) | 0.464 *** (0.063) | 0.043 *** (0.004) | 0.527 *** (0.064) | 0.560 *** (0.064) |
shrcr | 0.087 *** (0.005) | 0.042 *** (0.004) | 0.043 (0.004) | 0.043 *** (0.004) | 0.044 (0.004) |
Slack | −0.020 *** (0.006) | −0.049 *** (0.004) | −0.046 *** (0.004) | −0.047 *** (0.004) | −0.045 *** (0.004) |
N | 18,324 | 18,324 | 18,324 | 18,324 | 18,324 |
R2 | 0.0535 | 0.4116 | 0.4155 | 0.4144 | 0.4180 |
Adj R2 | 0.0533 | 0.4114 | 0.4151 | 0.4141 | 0.4176 |
F | 207.27 | 1830.40 | 1301.55 | 1295.88 | 1011.78 |
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Zhao, W.; Ye, G.; Xu, G.; Liu, C.; Deng, D.; Huang, M. CSR and Long-Term Corporate Performance: The Moderating Effects of Government Subsidies and Peer Firm’s CSR. Sustainability 2022, 14, 5543. https://doi.org/10.3390/su14095543
Zhao W, Ye G, Xu G, Liu C, Deng D, Huang M. CSR and Long-Term Corporate Performance: The Moderating Effects of Government Subsidies and Peer Firm’s CSR. Sustainability. 2022; 14(9):5543. https://doi.org/10.3390/su14095543
Chicago/Turabian StyleZhao, Wenli, Guangyu Ye, Guangyi Xu, Chong Liu, Dandan Deng, and Ming Huang. 2022. "CSR and Long-Term Corporate Performance: The Moderating Effects of Government Subsidies and Peer Firm’s CSR" Sustainability 14, no. 9: 5543. https://doi.org/10.3390/su14095543