The Effects of Corporate Social Responsibility on Financial Performance: Evidence from Chinese Listed Companies

As China continues to increase its influence at the global stage, its firms have been acknowledging the greater importance of Corporate Social Responsibility (CSR) practices. The Chinese government plays a crucial role in integrating CSR domestically. This paper explores the relationship between Chinese firms’ CSR activities on its financial performances. After analyzing a complete dataset of Chinese listed companies, the results suggest that there is indeed an impact of CSR activities on company sales performance. This result is more visible once the companies are classified into large and small firms. CSR actives have a significant, positive impact on large firm’s future sales, but a significant negative impact on small firm’s future sale.

Global Commerce Scholar