Can Corporate Social Performance (CSP) Restrain Companies from Over-speed Growth? – Evidence from Chinese Listed Companies

Authors

  • Li-Jun Wu School of Management, China University of Mining and Technology, Jiangsu Xuzhou, China, No1, Daxue Road, Xuzhou, Jiangsu, 221116, P.R.China
  • Hua Bu School of Management, China University of Mining and Technology, Jiangsu Xuzhou, China, No1, Daxue Road, Xuzhou, Jiangsu, 221116, P.R.China

Abstract

Corporate social performance (CSP) promotes coexistence and win-win situations of enterprises and various interest groups, which is consistent with the concept of sustainable growth and deviates from the original intention of over-speed growth. The question worth considering is whether fulfilling social responsibility will have some governance effect on the fast growth of enterprises ? What governance paths exist ? Based on the data of Chinese Listed Companies (Shanghai and Shenzhen A-shares) from 2010 to 2017, it was found that CSP had a significant inhibitory effect on over-speed growth of enterprises, and it also had significant inhibitory effect on over-speed growth of the higher quantile. In the current period, the fulfillment of corporate social responsibility by state-owned enterprises can significantly curb the over-speed growth of enterprises. The new investment expenditure level had the partial mediation effect between the CSP and the enterprise over-speed growth. Financial performance plays a positive regulating role between CSP and over-speed growth. The above conclusion remains valid after using a propensity score match (PSM), a two stage least square method (2SLS) of instrumental variable and a generalized method of moments (GMM) for robustness test.

Keywords: Corporate social performance; Investment expenditures; Over-speed enterprise growth

Cite As

L. Wu, H. Bu, "Can Corporate Social Performance (CSP) Restrain Companies from Over-speed Growth?
– Evidence from Chinese Listed Companies", Engineering Intelligent Systems, vol. 26 no. 2-3, pp. 115-129,
2018.






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Published

2018-06-01

Issue

Vol. 26 No. 2-3 (2018): International Journal of Engineering Intelligent Systems

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