Economic Policy Uncertainty and Corporate Social Responsibility Disclosure Similarity: Evidence from China

46 Pages Posted: 6 Dec 2021

See all articles by Xingnan Xue

Xingnan Xue

Xi'an Jiaotong University (XJTU) - School of Management

Liwen Wang

Shenzhen University

Nan Hu

Xi'an Jiaotong University (XJTU) - School of Management; Stevens Institute of Technology - School of Business

Date Written: December 3, 2021

Abstract

While the Chinese government has increasingly emphasized greater development balance between the economy, society, and the environment, little is known regarding how the state’s economic policy uncertainty affects within-firm corporate social responsibility (CSR) disclosure over time. Based on the institutional perspective, we propose that firms that face higher economic policy uncertainty likely issue CSR reports that are similar to their own past reports (i.e. CSR time-series disclosure similarity), reflecting few changes in corporate CSR activities. Further, such effects weaken for firms that experience strong external supervision or state ownership while they strengthen when the market reacts comparatively positively to previous reports (which we term “appreciation”). Empirical results derived from a sample of Chinese listed firms for a period running from 2009 through 2017 offer strong support for our hypotheses. Overall, our study contributes to the literature on corporate CSR disclosure and research on the consequences of economic policy uncertainty.

Keywords: Economic policy uncertainty; Corporate social responsibility; Disclosure similarity; China

JEL Classification: G12 G14 G2

Suggested Citation

Xue, Xingnan and Wang, Liwen and Hu, Nan and Hu, Nan, Economic Policy Uncertainty and Corporate Social Responsibility Disclosure Similarity: Evidence from China (December 3, 2021). Available at SSRN: https://ssrn.com/abstract=3976890 or http://dx.doi.org/10.2139/ssrn.3976890

Xingnan Xue (Contact Author)

Xi'an Jiaotong University (XJTU) - School of Management ( email )

26 Xianning W Rd.
Xi'an Jiao Tong University
Xi'an, Shaanxi 710049
China

Liwen Wang

Shenzhen University

3688 Nanhai Road, Nanshan District
Shenzhen, Guangdong 518060
China

Nan Hu

Stevens Institute of Technology - School of Business ( email )

Hoboken, NJ 07030
United States

Xi'an Jiaotong University (XJTU) - School of Management ( email )

28,Xianning West Road
Xi'an, Shaanxi 710049
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
59
Abstract Views
350
rank
477,016
PlumX Metrics