دانلود رایگان مقاله انگلیسی مسئولیت اجتماعی شرکت، رقابت بازار محصول و عملکرد بازار محصول - الزویر 2018

Abstract:

Using the data of Chinese listed firms from 2008 to 2014，we explore how product market competition affects the impact of corporate social responsibility (CSR) on firms’ product market performance and the underlying mechanism. We document that CSR significantly decreases firms’ product market performance only in noncompetitive industries, and the evidence is significant only for non-state-owned firms, primarily through the channel of weaker debt financing capability. Better corporate governance can effectively alleviate the negative impact of CSR on firms’ product market performance in noncompetitive industries.

5. Conclusions

Whether the engagement of CSR implies more about management’s self-serving purpose or shareholder value creation? This issue has received extensive attention among financial economists, practitioners, and policymakers. Using the data of Chinese listed firms from 2008 to 2014，we explore how product market competition and CSR interactively influence firms’ product market performance and the underlying mechanism. We document that CSR significantly decreases firms’ product market performance only in noncompetitive industries, and the evidence is significant only for non-state-owned firms, primarily through the channel of weaker debt financing capability. Better corporate governance can effectively alleviate the negative impact of CSR on firms’ product market performance in noncompetitive industries.

Overall, this paper finds that industry competition plays an important governance role in disciplining the self-serving purpose of management. Our findings suggest that Chinese listed firms should establish a series of complete CSR supervision, assessment, rewarding and punishment mechanisms to reduce the discretion of managers in CSR resource allocation and to mitigate agency problems between managers and shareholders. Our findings also yield important policy implications that governments in emerging markets should take measures to improve listed companies’ corporate governance and propel the process of marketization, given that the lack of external pressure and internal governance will exacerbate the self-serving purpose of management. Since publicly traded companies may be socially responsible in some CSR dimensions, yet socially irresponsible in others, further research could be extended to explore the different dimensions of CSR separately, examining the relation between its different components and product market performance.