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Article
Corporate social responsibility reporting and firm performance : evidence from China
Journal of Management and Governance
  • Lai Sheung, Suwina CHENG, Lingnan University, Hong Kong
  • Zhenpin, Kenny LIN, Lingnan University, Hong Kong
  • William WONG, Lingnan University, Hong Kong
Document Type
Journal article
Publication Date
9-1-2016
Publisher
Springer New York LLC
Keywords
  • Corporate social responsibility,
  • Accounting and market-based firm performance,
  • Sustainability,
  • China
Disciplines
Abstract
A series of product safety and child labor scandals in the mid-2000s aroused global concerns over business ethics and corporate social responsibility (CSR) in China. The general public expects companies to be socially responsible and to look beyond the maximizing of profits. In this study, we examine the relationship between the issuance of CSR reports and performance, in terms of accounting income, market return, and growth by firms listed in China in 2008–2009. We find that the historical performance of firms has significant and positive effects on the issuance of standalone CSR reports. There is also a positive correlation between current CSR disclosures and subsequent performance. Finally, we find that corporate donations are positively associated with improved performance in the following year. Our results support the view that CSR is a useful business strategy even in a developing country such as China. We call for government authorities in emerging markets to advocate CSR practices and for the market participants to change their perception of and attitude towards CSR.
DOI
10.1007/s10997-015-9309-1
E-ISSN
1572963X
Publisher Statement

Copyright © Springer Science+Business Media New York 2015

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Citation Information
Cheng, S., Lin, K. Z., & Wong, W. (2016). Corporate social responsibility reporting and firm performance: Evidence from China. Journal of Management and Governance, 20(3), 503-523. doi: 10.1007/s10997-015-9309-1