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Do Political Ties Cause Over-Investment in Corporate Social Responsibility? Empirical Evidence from Chinese Private Firms
| Content Provider | MDPI |
|---|---|
| Author | Xiong, Chan Zhang, Ke Zhao, Xiaoping |
| Copyright Year | 2020 |
| Description | One of the most significant trends of firms in recent years is the investment growth in Corporate Social Responsibility (CSR) in China. CSR investment helps firms to create business value and develop strategic resources, whereas many firms ignore its optimal level. Extraordinary enthusiasm for CSR possibly leads to over-investment in CSR, which increases firms’ cost and has a negative influence on financial performance. We tried to explore the reasons why Chinese firms are so enthusiastic about CSR investment. Drawing upon the social exchange theories, we tested the relationship between political ties and over-investment in CSR, and examined how this relationship is moderated by the degree of resource competition. Based on a sample of 2304 private firms in China, we found that political ties have a positive effect on CSR over-investment. Our findings also suggested that the degree of resource competition positively moderates the relationship between political ties and over-investment in CSR. |
| Starting Page | 7203 |
| e-ISSN | 20711050 |
| DOI | 10.3390/su12177203 |
| Journal | Sustainability |
| Issue Number | 17 |
| Volume Number | 12 |
| Language | English |
| Publisher | MDPI |
| Publisher Date | 2020-09-03 |
| Access Restriction | Open |
| Subject Keyword | Sustainability Applied Ethics Corporate Social Responsibility Over-investment in Csr Political Ties Social Exchange |
| Content Type | Text |
| Resource Type | Article |
