Corporate Social Responsibility Investment and Social Objectives

An Examination on Social Welfare Investment of Chinese State Owned Enterprises

Datos Bibliográficos

ID10492202
AutoresHong Bo (SOAS University of London, autor de correspondencia), Tao Li (0000-0001-7895-4136, Central University of Finance and Economics), Linda A Toolsema (University of Groningen)
Año2009
Volumen56
Número3
Páginas267-295
Fecha de publicación2009-05-22
Open AccessSí
TipoARTICLE
RevistaScottish Journal of Political Economy (JOURNAL)
Identificadores de la revistaISSN: 0036-9292 • E-ISSN: 1467-9485
EditorialWiley (PUBLISHER • GB)
DOI10.1111/j.1467-9485.2009.00484.x
OpenAlexW2117576313
IdiomaEN
Citas recibidas3
Referencias citadas14

We apply the theory of corporate social responsibility to analyse social welfare investment undertaken by Chinese State Owned Enterprises (SOEs). We present a simple theoretical model to illustrate how the presence of social objectives in the firm's objective function changes its investment behaviour. Our theoretical model accommodates special features of Chinese SOEs, whose social welfare investment is driven by both social objectives and profit concerns. The model is then tested using a panel of Chinese enterprises during the period 1995–1999. The empirical analysis indicates that despite of the corporatization reform social welfare investment undertaken by Chinese SOEs is still inefficient due to the lack of profit concerns, suggesting that social objectives still dominate profit concerns in motivating the SOEs' social welfare investment. However, we do obtain clear‐cut evidence showing that social objectives become less important as time progresses

Business · Corporatization · Economics · Investment (military · Market economy · Microeconomics · Political science · Profit (economics · Public economics · Social Welfare · Welfare · Corporate Finance and Governance · Corporate Social Responsibility Reporting · Corporate Taxation and Avoidance

Herramientas

Abrir DOISci-Hub