Open AccessCorporate Social Responsibility and Idiosyncratic Risk The impact of CSR on the idiosyncratic risk of Chinese enterprises
Author(s) -
Hu Yang,
Jiaxin Shen,
Ruolin Chen
Publication year - 2021
Publication title -
e3s web of conferences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.203
H-Index - 22
eISSN - 2555-0403
pISSN - 2267-1242
DOI - 10.1051/e3sconf/202130801026
Subject(s) - corporate social responsibility , endogeneity , systematic risk , corporate governance , business , multicollinearity , accounting , robustness (evolution) , economics , finance , econometrics , public relations , regression analysis , political science , gene , biochemistry , chemistry , machine learning , computer science
This paper investigates the impact of corporate social responsibility on the idiosyncratic risk of enterprises. We find that corporate social responsibility is negatively associated with the idiosyncratic risk of enterprises. This association is robust to a series of robustness checks, including the use of alternative indicators, exclusion of the effect of multicollinearity, and the addition of missing variables to address endogeneity concerns. Further analyses show that the impact of corporate social responsibility on idiosyncratic risk is more significant in state-owned enterprises, firms with poor corporate governance or low growth. Our findings support the notion that corporate social responsibility appears to improve corporate performance.