| Author: | Ho, Hoi Yin Pauline |
| Title: | State control, corporate social performance and corporate financial performance in China |
| Advisors: | Fung, Simon (AF) |
| Degree: | D.B.A. |
| Year: | 2012 |
| Subject: | Social responsibility of business -- China. Corporations -- Finance -- China. Government business enterprises -- China. Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | vii, 160 leaves ; 30 cm |
| Language: | English |
| Abstract: | This study examines the association between a firm's corporate social performance (CSP) and corporate financial performance (FP) based on the unique institutional framework of an emerging market. Using a multidimensional measure of a firm's level of corporate social responsibility (CSR) available in China, I find a positive association between CSP and FP, measured in terms of ROA and ROE. More importantly, this positive association is found to be significantly weaker for firms controlled by the State (State-controlled Enterprises, or SCEs), suggesting that the CSR activities engaged by politically-connected firms are less likely to be value-enhancing, consistent with the non-value-maximizing objectives pursued by these firms. In addition, results show that the moderating effect of SCEs on the CSP-FP association is stronger in provinces with weaker firm-specific information environment, poorer economic and marketization development, and weaker legal investor protection. Further analyses show that the above inferences are not sensitive to alternative specifications such as the use of future performance, alternative measures of state influence and a battery of other robustness checks. These results contribute to our understanding on how CSR activities would affect firm performance in different institutional settings. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| b28256232.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 2.33 MB | Adobe PDF | View/Open |
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