Corporate social responsibility and corporate financialization-Based on information effect and reputation insurance effect.
China has witnessed the trend of corporate financialization (CF) with some potential risks as the economy slows down its pace in the past decade. In this paper, we explore whether corporate social responsibility (CSR) could work as an information channel to restrain CF or as reputation insurance to...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Public Library of Science (PLoS)
2022-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0271552 |
| _version_ | 1811222103935942656 |
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| author | Lei Lei Di Zheng XuDong Chen |
| author_facet | Lei Lei Di Zheng XuDong Chen |
| author_sort | Lei Lei |
| collection | DOAJ |
| description | China has witnessed the trend of corporate financialization (CF) with some potential risks as the economy slows down its pace in the past decade. In this paper, we explore whether corporate social responsibility (CSR) could work as an information channel to restrain CF or as reputation insurance to promote CF. We find a significant positive relation between CSR and CF, especially for non-SOEs and enterprises with low ownership concentration and high CSR scores. It verifies that the reputation insurance effect by CSR outweighs the information effect and denies the opposite. The results prove robust in tests including sensitivity and endogeneity test. By expanding the scale and adding new aspects to the discussion about how CSR affects CF, this paper provides valuable empirical support to both theorists and practitioners. |
| first_indexed | 2024-04-12T08:10:59Z |
| format | Article |
| id | doaj.art-39e75042fd2640099873a24b1e4e0931 |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-04-12T08:10:59Z |
| publishDate | 2022-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-39e75042fd2640099873a24b1e4e09312022-12-22T03:40:57ZengPublic Library of Science (PLoS)PLoS ONE1932-62032022-01-01177e027155210.1371/journal.pone.0271552Corporate social responsibility and corporate financialization-Based on information effect and reputation insurance effect.Lei LeiDi ZhengXuDong ChenChina has witnessed the trend of corporate financialization (CF) with some potential risks as the economy slows down its pace in the past decade. In this paper, we explore whether corporate social responsibility (CSR) could work as an information channel to restrain CF or as reputation insurance to promote CF. We find a significant positive relation between CSR and CF, especially for non-SOEs and enterprises with low ownership concentration and high CSR scores. It verifies that the reputation insurance effect by CSR outweighs the information effect and denies the opposite. The results prove robust in tests including sensitivity and endogeneity test. By expanding the scale and adding new aspects to the discussion about how CSR affects CF, this paper provides valuable empirical support to both theorists and practitioners.https://doi.org/10.1371/journal.pone.0271552 |
| spellingShingle | Lei Lei Di Zheng XuDong Chen Corporate social responsibility and corporate financialization-Based on information effect and reputation insurance effect. PLoS ONE |
| title | Corporate social responsibility and corporate financialization-Based on information effect and reputation insurance effect. |
| title_full | Corporate social responsibility and corporate financialization-Based on information effect and reputation insurance effect. |
| title_fullStr | Corporate social responsibility and corporate financialization-Based on information effect and reputation insurance effect. |
| title_full_unstemmed | Corporate social responsibility and corporate financialization-Based on information effect and reputation insurance effect. |
| title_short | Corporate social responsibility and corporate financialization-Based on information effect and reputation insurance effect. |
| title_sort | corporate social responsibility and corporate financialization based on information effect and reputation insurance effect |
| url | https://doi.org/10.1371/journal.pone.0271552 |
| work_keys_str_mv | AT leilei corporatesocialresponsibilityandcorporatefinancializationbasedoninformationeffectandreputationinsuranceeffect AT dizheng corporatesocialresponsibilityandcorporatefinancializationbasedoninformationeffectandreputationinsuranceeffect AT xudongchen corporatesocialresponsibilityandcorporatefinancializationbasedoninformationeffectandreputationinsuranceeffect |