| Issue |
E3S Web Conf.
Volume 409, 2023
International Conference on Management Science and Engineering Management (ICMSEM 2023)
|
|
|---|---|---|
| Article Number | 04001 | |
| Number of page(s) | 12 | |
| Section | Project Management | |
| DOI | https://doi.org/10.1051/e3sconf/202340904001 | |
| Published online | 01 August 2023 | |
CSR Initiatives of Controlling Shareholder in Share Pledge Firms: Sustainable Orientation or Interim Plan?
Business School, Sichuan University, Chengdu, 610065, People’s Republic of China
* e-mail: lzy_feng@scu.edu.cn
** This study is supported by Sichuan University research fundation (2022cx21).
This paper investigates the effects of share pledge by controlling shareholder on corporate social responsibility and the mechanism through which stock pledge affects CSR. Using a sample of Chinese listed firms from 2008 to 2020, we find that firms with pledging controlling shareholders are more likely to invest in corporate social responsibility (CSR) than other firms. Their CSR also perform better even when all pledge funds are invested to shareholders themselves rather than to the company’s operation. We then provide evidence to show that the motivating effect of stock pledge by controlling shareholder on CSR is related to controlling shareholder’s incentives to improve corporate value to prevent loss of corporate control and reduce the risk of stock price crash. These results consistently suggest that controlling shareholders employ corporate social responsibility as an effective way to reduce the risk of controlling right transfer.
Key words: Share pledging / Donation behavior / Management / Controlling shareholders / Regression analysis
© The Authors, published by EDP Sciences, 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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