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Ultimate ownership, corporate social responsibility and firm value: evidence from China.

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Title: Ultimate ownership, corporate social responsibility and firm value: evidence from China.
Authors: Su, Kun1 (AUTHOR) suk711@126.com, Fu, Senliulu1 (AUTHOR) fsll@mail.nwpu.edu.cn, Meng, Yuan2 (AUTHOR) angela_mengyuan@163.com, Wan, Rui3 (AUTHOR) melissa.wan@ucanwest.ca
Source: Chinese Management Studies. 2025, Vol. 19 Issue 6, p2024-2054. 31p.
Subject Terms: *SOCIAL responsibility of business, *GOVERNMENT business enterprises, *PROPERTY rights, ENTERPRISE value, ECONOMIC conditions in China
Geographic Terms: CHINA
Abstract: Purpose: This paper aims to investigate the relationship among ultimate ownership, corporate social responsibility (CSR) and firm value using firm-level data from Chinese listed companies. Design/methodology/approach: Using a panel data of Chinese listed firms during 2010–2018, this paper estimates with correlation analysis and multiple regression analysis. Findings: The larger the divergence between ultimate owner's control rights and cash flow rights, the stronger motivation is to infringe corporate interests and cover up misconduct through CSR. While the larger the cash flow rights, the more conducive to restrain the ultimate owner from CSR investment. The state-owned enterprises have a higher CSR. Furthermore, the separation of control rights and cash flow rights is significantly negatively related to firm value, whereas cash flow rights positively affect it. State-owned ultimate owner has a negative impact on firm value. CSR plays a significant mediating effect between ultimate ownership and firm value. Originality/value: This paper reveals the tunneling and disguising effect of CSR and provides a new approach for the affecting mechanisms between ultimate ownership and firm value. [ABSTRACT FROM AUTHOR]
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Database: Business Source Index
Description
Abstract:Purpose: This paper aims to investigate the relationship among ultimate ownership, corporate social responsibility (CSR) and firm value using firm-level data from Chinese listed companies. Design/methodology/approach: Using a panel data of Chinese listed firms during 2010–2018, this paper estimates with correlation analysis and multiple regression analysis. Findings: The larger the divergence between ultimate owner's control rights and cash flow rights, the stronger motivation is to infringe corporate interests and cover up misconduct through CSR. While the larger the cash flow rights, the more conducive to restrain the ultimate owner from CSR investment. The state-owned enterprises have a higher CSR. Furthermore, the separation of control rights and cash flow rights is significantly negatively related to firm value, whereas cash flow rights positively affect it. State-owned ultimate owner has a negative impact on firm value. CSR plays a significant mediating effect between ultimate ownership and firm value. Originality/value: This paper reveals the tunneling and disguising effect of CSR and provides a new approach for the affecting mechanisms between ultimate ownership and firm value. [ABSTRACT FROM AUTHOR]
ISSN:1750614X
DOI:10.1108/CMS-12-2023-0719