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The Determinants of Virtue: Modelling Changes in the CSR Ratings of Chinese Firms

Author

Listed:
  • Shuangqi Wu
  • Simon Appleton
  • Lina Song
  • Jinmin Wang
Abstract
Most empirical studies on Corporate Social Responsibility (CSR) use cross-sectional data or case studies, making causality hard to establish. The paper overcomes this limitation by using panel data on Chinese firms. The paper also finds no effect of last year’s profits on CSR ratings, although their negative contemporaneous relation suggests a trade-off. Managerial shareholdings reduce CSR ratings while rising wages and employment are the main drivers of increasing CSR ratings. This suggests the CSR agenda aligns with the interests of labour, but not capital. However, the positive effect of Tobin’s Q may indicate CSR is associated with intangibles of value to a firm.

Suggested Citation

  • Shuangqi Wu & Simon Appleton & Lina Song & Jinmin Wang, 2017. "The Determinants of Virtue: Modelling Changes in the CSR Ratings of Chinese Firms," Working Papers id:12253, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12253
    Note: Institutional Papers
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    corporate social responsibility; firms; China; chinese firms; economy; trade-off; institutions; CSR ratings; labour; capital; positive effect of Tobin’s Q; negative contemporaneous relation; ross-sectional data; modelling changes.;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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