Economic policy uncertainty and imitation behaviors of corporate social responsibility practices: Evidence from China
Publication Type
Journal Article
Publication Date
10-2023
Abstract
In this paper, we examine whether firms facing higher economic policy uncertainty (EPU) are more likely to show similar corporate social responsibility (CSR) practices compared with their peer firms. Drawing upon institutional theory, in response to uncertainty under complex circumstances, managers tend to imitate peer firms' strategic actions to acquire legitimacy. Consistent with our theoretical expectations, we find that EPU increases the likelihood that a focal firm will show CSR practices similar to its peer firms. Such a likelihood is amplified for firms that (1) bear more negative media coverage, (2) have higher industry competition intensity, (3) belong to heavy-polluting industries, and (4) for the first-time disclosures. Our results hold when we employ a series of endogeneity tests and robustness checks.
Keywords
Corporate social responsibility, Document similarity, Economic policy uncertainty, Institutional theory
Discipline
Asian Studies | Business Law, Public Responsibility, and Ethics | Finance and Financial Management | Industrial Organization
Research Areas
Information Systems and Management
Publication
International Review of Financial Analysis
Volume
89
First Page
1
Last Page
15
ISSN
1057-5219
Identifier
10.1016/j.irfa.2023.102753
Publisher
Elsevier
Citation
XUE, Xingnan and HU, Nan.
Economic policy uncertainty and imitation behaviors of corporate social responsibility practices: Evidence from China. (2023). International Review of Financial Analysis. 89, 1-15.
Available at: https://ink.library.smu.edu.sg/sis_research/8033
Copyright Owner and License
Authors
Additional URL
https://doi.org/10.1016/j.irfa.2023.102753