The effect of corporate social responsibility on total factor productivity: Insights into managerial myopia and innovation mediation

Abstract

This paper investigates the impact of Corporate Social Responsibility (CSR) on total factor productivity (TFP) within firms and the underlying mechanisms of this relationship, while also examining the moderating role of managerial myopia. Utilizing data from China's A-share listed companies spanning the years 2012 to 2022, our study reveals a positive correlation between robust CSR practices and increased TFP, demonstrating that socially responsible behavior positively influences the economic efficiency of enterprises. Notably, managerial myopia is found to significantly diminish this positive effect. Furthermore, our analysis indicates that CSR fosters enhanced innovation performance among firms, which in turn elevates their TFP. These findings highlight the significance of CSR and underscore the necessity for firms to mitigate managerial myopia in order to achieve long-term sustainable development.