The impact of corporate social irresponsibility on emerging-economy firms' long-term performance: An explanation based on signal theory

作者：Zhong, Xi; Chen, Weihong^*; Ren, Ge

来源：Journal of Business Research, 2022, 144: 345-357.

DOI：10.1016/j.jbusres.2022.02.005

• Corporate social irresponsibility
• Long -term performance
• Signal theory
• Emerging-economy firms

Corporate social irresponsibility (CSI) is widespread globally and severely impacts firms negatively. However, scholars have rarely empirically explored the relationship between CSI and emerging-economy firms' long-term performance. Based on signal theory, we propose that CSI, as a negative signal unintentionally sent by the firm, will significantly weaken the approval and support of core stakeholders, and eventually have a serious adverse effect on emerging-economy firms' long-term performance. In addition, we further propose that the relationship between CSI and emerging-economy firms' long-term performance is likely nuanced and may vary by a multi-dimensional signal environment (e.g., corporate charitable donation, industry competition intensity, and regional marketization degree). After conducting an empirical test on Chinese listed companies from 2003 to 2019, we find that most of our arguments are supported. Our research enriches and expands the CSI and signal theory literature by providing important insights for firms and government departments to control CSI.

• 单位
  广西大学; 广东工业大学