The brighter side of being socially responsible: CSR ratings and financial distress among Chinese state and non-state owned firms
The brighter side of being socially responsible: CSR ratings and financial distress among Chinese state and non-state owned firms
We examine the effect of corporate social responsibility (CSR) quality ratings on the financial distress levels of Chinese enterprises by using the previously unexplored new China-specific Altman “ZChina Score” in the context of CSR and data from 749 firms over the 2009-2014 period. First, we find that CSR quality ratings significantly reduce Chinese firms’ distress levels. Second, we find that the ability of CSR to reduce distress levels in non-state-owned Chinese firms is higher than state-owned ones. Finally, we find similar results when we divide the data into high-low CSR ratings and levels of distress. Our results are robust to potential endogeneities.
Corporate Social Responsibility (CSR) Quality Ratings, Financial distress, Altman ZChina Score, State and Non-State Owned Firms, China
180-186
Shahab, Yasir
b47bf26f-bd24-48c8-beaf-5c6849bf10c2
Ntim, Collins G.
1f344edc-8005-4e96-8972-d56c4dade46b
Ullah, Farid
aeee2696-d071-4526-a3ae-3c6e8054dd09
20 April 2019
Shahab, Yasir
b47bf26f-bd24-48c8-beaf-5c6849bf10c2
Ntim, Collins G.
1f344edc-8005-4e96-8972-d56c4dade46b
Ullah, Farid
aeee2696-d071-4526-a3ae-3c6e8054dd09
Shahab, Yasir, Ntim, Collins G. and Ullah, Farid
(2019)
The brighter side of being socially responsible: CSR ratings and financial distress among Chinese state and non-state owned firms.
Applied Economics Letters, 26 (3), .
(doi:10.1080/13504851.2018.1450480).
Abstract
We examine the effect of corporate social responsibility (CSR) quality ratings on the financial distress levels of Chinese enterprises by using the previously unexplored new China-specific Altman “ZChina Score” in the context of CSR and data from 749 firms over the 2009-2014 period. First, we find that CSR quality ratings significantly reduce Chinese firms’ distress levels. Second, we find that the ability of CSR to reduce distress levels in non-state-owned Chinese firms is higher than state-owned ones. Finally, we find similar results when we divide the data into high-low CSR ratings and levels of distress. Our results are robust to potential endogeneities.
Text
Accepted_Version_AEL_7_March_2018
- Accepted Manuscript
More information
Accepted/In Press date: 7 March 2018
e-pub ahead of print date: 9 March 2018
Published date: 20 April 2019
Keywords:
Corporate Social Responsibility (CSR) Quality Ratings, Financial distress, Altman ZChina Score, State and Non-State Owned Firms, China
Identifiers
Local EPrints ID: 418624
URI: http://eprints.soton.ac.uk/id/eprint/418624
ISSN: 1350-4851
PURE UUID: 19e21c0a-7271-4768-901a-8305c54328cb
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Date deposited: 13 Mar 2018 17:30
Last modified: 16 Mar 2024 06:19
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Author:
Yasir Shahab
Author:
Farid Ullah
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