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The Impact of Financial Redundancy on Corporate Social Responsibility Performance: Evidence From Chinese Listed Firms

This study examines the impact of financial redundancy on corporate social responsibility (CSR) based on a sample of Chinese listed firms from 2010 to 2020. The results indicate that financial redundancy has a significant positive effect on CSR. However, financially redundant resources are not balan...

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Detalles Bibliográficos
Autores principales: He, Ling, Gan, Shengdao, Zhong, Tingyong
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9161148/
https://www.ncbi.nlm.nih.gov/pubmed/35664182
http://dx.doi.org/10.3389/fpsyg.2022.882731
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author He, Ling
Gan, Shengdao
Zhong, Tingyong
author_facet He, Ling
Gan, Shengdao
Zhong, Tingyong
author_sort He, Ling
collection PubMed
description This study examines the impact of financial redundancy on corporate social responsibility (CSR) based on a sample of Chinese listed firms from 2010 to 2020. The results indicate that financial redundancy has a significant positive effect on CSR. However, financially redundant resources are not balanced in terms of how they encourage firms to undertake different dimensions of social responsibility; specifically, firms actively take social responsibility toward shareholders and the public but take less responsibility for employees and the environment. The incentive for firms with financially redundant resources to promote CSR initiatives is attributable to their high level of social awareness and pursuit of reputation. Consistent with their motives, our economic consequence analysis reveals that the incremental effect of CSR driven by financial redundancy improves corporate reputation but has no enhancement effect on corporate performance. Finally, our extended analysis reveals that the relative impact of financial redundancy on CSR depends on several organizational variables that influence a firm’s preferences for CSR investments. The positive impact of financial redundancy on CSR is stronger among firms with high managerial career concerns and firms in regions with high market competition. This research provides a necessary structure for future CSR studies to follow. By delving deeply into the relationship between financial redundancy and CSR, it enables scholars to better address the critical management question of whether wealthy firms do more good for society compared to those that are less wealthy.
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spelling pubmed-91611482022-06-03 The Impact of Financial Redundancy on Corporate Social Responsibility Performance: Evidence From Chinese Listed Firms He, Ling Gan, Shengdao Zhong, Tingyong Front Psychol Psychology This study examines the impact of financial redundancy on corporate social responsibility (CSR) based on a sample of Chinese listed firms from 2010 to 2020. The results indicate that financial redundancy has a significant positive effect on CSR. However, financially redundant resources are not balanced in terms of how they encourage firms to undertake different dimensions of social responsibility; specifically, firms actively take social responsibility toward shareholders and the public but take less responsibility for employees and the environment. The incentive for firms with financially redundant resources to promote CSR initiatives is attributable to their high level of social awareness and pursuit of reputation. Consistent with their motives, our economic consequence analysis reveals that the incremental effect of CSR driven by financial redundancy improves corporate reputation but has no enhancement effect on corporate performance. Finally, our extended analysis reveals that the relative impact of financial redundancy on CSR depends on several organizational variables that influence a firm’s preferences for CSR investments. The positive impact of financial redundancy on CSR is stronger among firms with high managerial career concerns and firms in regions with high market competition. This research provides a necessary structure for future CSR studies to follow. By delving deeply into the relationship between financial redundancy and CSR, it enables scholars to better address the critical management question of whether wealthy firms do more good for society compared to those that are less wealthy. Frontiers Media S.A. 2022-05-19 /pmc/articles/PMC9161148/ /pubmed/35664182 http://dx.doi.org/10.3389/fpsyg.2022.882731 Text en Copyright © 2022 He, Gan and Zhong. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
He, Ling
Gan, Shengdao
Zhong, Tingyong
The Impact of Financial Redundancy on Corporate Social Responsibility Performance: Evidence From Chinese Listed Firms
title The Impact of Financial Redundancy on Corporate Social Responsibility Performance: Evidence From Chinese Listed Firms
title_full The Impact of Financial Redundancy on Corporate Social Responsibility Performance: Evidence From Chinese Listed Firms
title_fullStr The Impact of Financial Redundancy on Corporate Social Responsibility Performance: Evidence From Chinese Listed Firms
title_full_unstemmed The Impact of Financial Redundancy on Corporate Social Responsibility Performance: Evidence From Chinese Listed Firms
title_short The Impact of Financial Redundancy on Corporate Social Responsibility Performance: Evidence From Chinese Listed Firms
title_sort impact of financial redundancy on corporate social responsibility performance: evidence from chinese listed firms
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9161148/
https://www.ncbi.nlm.nih.gov/pubmed/35664182
http://dx.doi.org/10.3389/fpsyg.2022.882731
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