Does CSR reduce financial distress? Moderating effect of firm characteristics, auditor characteristics, and covid-19

IF 4.3 Q2 MANAGEMENT

International Journal of Accounting and Information Management Pub Date : 2023-09-26 DOI:10.1108/ijaim-04-2023-0081

Md Jahidur Rahman, Hongtao Zhu, Sihe Chen

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引用次数: 0

Abstract

Purpose This study aims to investigate the relationship between corporate social responsibility (CSR) and financial distress and the moderating effect of firm characteristics, auditor characteristics and the Coronavirus disease 2019 (Covid-19) in China. Design/methodology/approach The research question is empirically examined on the basis of a data set of 1,257 Chinese-listed firms from 2011 to 2021. The dependent variable is financial distress risk, which is measured mainly by Z-score. CSR score is used as a proxy for CSR. Propensity score matching, two-stage least square and generalized method of moments are adopted to mitigate the potential endogeneity issue. Findings This study reveals that CSR can reduce financial distress. Specifically, results show an inverse relationship between CSR and financial distress, more significantly in non-state-owned enterprises, firms with non-BigN auditor and during Covid-19. The results are consistent and robust to endogeneity tests and sensitivity analyses. Originality/value This study enriches the literature on CSR and financial distress, resulting in a more attractive corporate environment, improved financial stability and more crisis-resistant economies in China.

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企业社会责任能减轻财务困境吗?事务所特征、审计师特征与covid-19的调节效应

本研究旨在探讨中国企业社会责任(CSR)与财务困境的关系，以及公司特征、审计师特征和2019冠状病毒病(Covid-19)的调节作用。本文基于2011年至2021年1257家中国上市公司的数据集对研究问题进行了实证检验。因变量为财务困境风险，主要通过Z-score来衡量。CSR得分作为CSR的代理。采用倾向评分匹配、两阶段最小二乘法和广义矩量法来缓解潜在的内生性问题。本研究发现企业社会责任可以减轻财务困境。具体而言，研究结果显示，企业社会责任与财务困境之间存在反比关系，在非国有企业、非大型审计机构和2019冠状病毒病期间更为显著。内生性检验和敏感性分析的结果是一致和稳健的。本研究丰富了企业社会责任与财务困境的相关文献，使中国的企业环境更具吸引力，金融稳定性提高，经济更具抗危机能力。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Accounting and Information Management MANAGEMENT-

CiteScore

7.90

自引率

3.00%

发文量

期刊介绍： The International Journal of Accounting & Information Management focuses on publishing research in accounting, finance, and information management. It specifically emphasizes the interaction between these research areas on an international scale and within both the private and public sectors. The aim of the journal is to bridge the knowledge gap between researchers and practitioners by covering various issues that arise in the field. These include information systems, accounting information management, innovation and technology in accounting, accounting standards and reporting, and capital market efficiency.