Can Corporate Social Responsibility Reduce Financial Risk for Enterprises: ——Empirical Evidence from Chinese Listed Companies

The realization of ‘high-quality’ development in China in the new era requires enterprises to not only process raw materials to provide goods and services, but also make certain contributions to the society to achieve green development and common prosperity. This paper empirically analyzes the impact of Corporate Social Responsibility on financial risk by setting relevant variables of CSR and taking A-share listed companies from 2009 to 2018 as research samples. The results show that undertaking more CSR and voluntary disclosure of CSR information can reduce the financial risk of enterprises. While, the greater the involvement of CSR, the higher the financial risk faced by the enterprise. Further heterogeneity analysis studies the impact of CSR on financial risk in enterprises with or without internal control deficiency and different ownership properties.