The CSR (corporate social responsibility) concept has become an increasingly important part of corporations’ strategies and plans. However, it does not have to translate into investors’ decisions to buy their shares. The article investigates the relationships between companies implementing a CSR strategy, the rates of return on their stocks, and their investment risk. The paper aims to verify whether applying a CSR strategy affects stock market parameters (lower risk, higher investment profitability) and whether investors consider CSR companies less risky or more profitable and reliable than non-CSR firms. The following hypotheses have been formulated: (I) CSR companies are less risky (in terms of investment risk) than non-CRS ones; (II) CSR companies are characterized by higher rates of return than non-CSR ones.
Purpose
This study aims to examine the relationship between an ownership structure with multiple large shareholders and corporate social responsibility (CSR) with regard to Chinese-listed companies.
Design/methodology/approach
Multiple regression analysis was used on 4,940 samples of 884 listed companies in China for the period 2009–2017, to empirically test the influence of an ownership structure on enterprises’ fulfillment of social responsibility. Moreover, the propensity score matching–difference in differences and Heckman two-stage approaches were used for the robustness of the regression results.
Findings
The results show that ownership structures with multiple large shareholders can promote social responsibility. The check-and-balance ability of non-controlling large shareholders, corporate information transparency and corporate system environment moderate the relationship between multiple large shareholders and CSR engagement.
Originality/value
This paper complements prior studies on the ownership structure of multiple large shareholders. The findings enrich the literature on corporate governance and CSR. The results also reveal information about the situational factors, helping identify the mechanism through which the ownership structure of multiple large shareholders affects CSR.
Determinants of Corporate Social Responsibility Disclosure: An Empirical Study of Polish Listed Companies
