Corporate social responsibility, market business environment and stock price crash Risk: An analysis from the perspective of stakeholders
Year: 2025
Type: article
Abstract: Listed companies often fulfill their social responsibilities in order to balance various stakeholders. However, the impact of this action on the risk of stock price crash requires further analysis. We use Chinese A-share listed companies as samples for empirical testing. The results show that the fulfillment of social responsibility leads to a higher risk of stock price crash. This reflects the concerns of investors and other stakeholders about the high costs and lack of rhetoric that come with corporate social responsibility. The mechanism analysis finds that the improvement of the local business environment can inhibit this positive impact. Heterogeneity analysis shows that CSR has a significant positive impact on stock price crash risk among profitable firms and firms in the central and eastern regions.
Authors: Zhengyi Li, Cuidan Wu
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,930
OpenAlex ID: W4413214283