Proceedings of The 6th International Conference on Applied Research in Business, Management and Economics
Year: 2023
DOI:
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The Influences of Environment, Social and Governance Corporate Performance: A Case Study of China on the Manufacturing Industry
Angela K-F MA, Weijie Mei, and Jiayue Song
ABSTRACT:
Purpose – The aim of this study is threefold. The first is to conduct a comprehensive examination of the various board attributes to corporate social responsibility (CSR) reporting in the Chinese manufacturing industry. The second is to investigate the impact of ownership and board attributes on CSR. The third is to examine the moderating effect of media reporting on the relationship between CSR and company financial performance.
Design/methodology/approach – All A-share listed Chinese companies during the years 2020 and 2021, with 483 firm-year observations have been investigated for this study. The data are analyzed by CSR metrics in the form of environmental, social, and governance (ESG) scores using an ordinary least squares regression analysis and fixed effect regression models.
Findings – The results of this study reveal that; no matter whether the companies are state-own or non-state-own, there is a significant positive effect of board meetings, board independent directors, board size, female directors, and CEO-Chairman separation on the CSR disclosure of the Chinese manufacturing industry. Also, the results support the importance of CSR performance in promoting the corporate financial performance of the manufacturing sector.
Originality/value –This study attempts to fill the gap in the extant literature which has a scarce number of studies focused on the influence of CSR performance on corporate financial performance. This paper not only updates the existing understanding of CSR performance by board attributes and company ownership; but also explains the significance of CSR performance in the Chinese manufacturing industry.
keywords: Corporate social responsibility, Environment, Society, Governance, Board structure, Chinese manufacturing industry