Abstract
By employing the Chinese listed firm's data from 2010 to 2017, this study explores the impact of share pledging on firms' corporate social responsibility (CSR) performance. Empirical results indicate a negative relationship between share pledging and CSR performance. This effect is robust after using alternative measures and different regression methods, and also consistent after tackling the endogenous issues. Furthermore, we find that risk-taking and agency cost are two possible underlying mechanisms through which share pledging reduces CSR. In addition, CSR reduction caused by share pledging leads to poorer economic performance and lower market value of firms.
| Original language | English |
|---|---|
| Pages (from-to) | 175–195 |
| Number of pages | 21 |
| Journal | Economic Research-Ekonomska Istrazivanja |
| Volume | 35 |
| Issue number | 1 |
| Online published | 4 Mar 2021 |
| DOIs | |
| Publication status | Published - 2022 |
Research Keywords
- Share pledging
- Agency cost
- Corporate social responsibility
Publisher's Copyright Statement
- This full text is made available under CC-BY 4.0. https://creativecommons.org/licenses/by/4.0/
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