The Impacts of Social Responsibility and Ownership Structure on Sustainable Financial Development of China’s Energy Industry

Abstract

Abstract:In the analysis, we integrated stakeholder and agency theories to explore the connection between corporate social responsibility (CSR) and sustainable financial development by considering the moderating effect of ownership structure. After empirical analysis, we found the following conclusions. First, the short-term and long-term economic performance is positively affected by CSR, which leads to sustainable financial development. Second, ownership circulation has a positive relationship with economic performance in the short run, which short-term profit increases as ownership circulation strengthens. Third, the effect of CSR on short-term economic performance is moderated by ownership structure. Excessive concentrated ownership may lead to decisions that do not satisfy all key stakeholders and may reduce the positive effect of CSR on economic performance. Finally, we suggest that Chinese energy companies should pay more attention to improving corporate social responsibility to maintain good economic performance and develop sustainable competitive advantage. Meanwhile, companies should optimize ownership concentration to avoid weakening the positive effects of social responsibility on short-term economic performance.

An Analysis of Corporate Social Responsibility and Firm Performance with Moderating Effects of CEO Power and Ownership Structure: A Case Study of the Manufacturing Sector of Pakistan

“…Firms with social responsibility try to maintain all stakeholders' interests, which may lead to higher profit. This goal can be achieved with a well-established ownership structure [127].…”

“…We used an index for CSR as social contribution value per share (SCV) by following the guidelines of the Shanghai Stock Exchange (SSE) [127]. This index is based on all the components necessary for social value, such as earnings per share produced value for shareholders, value produced for society measured as state tax revenues, employee salaries, creditors' loan interest, and other values for stakeholders, and eliminating environmental pollution as a social cost.…”

Corporate Social Responsibility and Operational Inefficiency: A Dynamic Approach

“…The inconclusive results are justified by the complexity of the CSR concept and the difficulty to argue in favor of a direct causal relationship with firm performance [56]. Studies trying to shed light on the social-financial performance association have investigated omitted variables such as innovation [3,[58][59][60], causality effects [3,11,54], moderating factors [58,61,62], mediating effect explanations [3,53,63,64], firm-specific characteristics [65][66][67] and corporate social irresponsibility [68,69]. In these studies, financial performance is defined in terms of stock prices, market value or accounting profitability using the firm as a unit of analysis.…”

Does Analyst Coverage Enhance Firms’ Corporate Social Performance? Evidence from Korea

“…Firms with high CSR have low capital costs [3], increase employee loyalty [22] and increase firm value [23,24]. CSR has a sustainable impact on short-and long-term economic performance [25]. CSR is also influenced by the motivations of various stakeholders in the firm [26] and is affected by managerial ownership [27], foreign ownership [28], institutional ownership [10] and board structure [27] labor unions [29,30] and business diversification [31].…”