Stakeholder-Centered Corporate Governance and Corporate Sustainable Development: Evidence from CSR Practices in the Top Companies by Market Capitalization at Shanghai Stock Exchange of China
Abstract
:1. Introduction
2. Literature and Hypotheses
Underpinning Theory(s) of the Study
3. Research Design
3.1. Sample and Data Collection
3.2. Variables and Measurement
3.2.1. Dependant Variable
3.2.2. Explanatory Variables
3.2.3. Control Variables
3.2.4. Moderator Variable
3.2.5. Econometric Model
4. Results
4.1. Descriptive Statistics
4.2. Regression Analysis
4.3. Effect of Moderator Variable
5. Discussion
6. Conclusions
6.1. Contribution
6.2. Practical Implications
6.3. Suggestions and Limitations
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Variable | Abbreviation | Operational Definition | Reference |
---|---|---|---|
Firm Performance | FP | It is the combination of Return on assets, Tobin’s Q and Growth | Cho et al. (2019) [84] |
Return on assets | ROA | Net income divided by total assets | Cho et al. (2019) [84] |
Tobin’s Q ratio | TbQ | Market value of total assets divided by book value of total assets | Khan et al. (2020) [85] |
Growth | Grow | Sales growth | Khan et al. (2020) [85] |
Corporate Social responsibility | CSR | The concerns of business towards stakeholders during their business operations. It is combination of ECR, GCR, SCR, COMCR, CRCR. | World Business Council for Sustainable Development: Geneva, Switzerland, 2000 [45] |
Employee centered responsibility | ECR | Wages and benefits given to employees | Zhang et al. (2022) [86] |
Government centered responsibility | GCR | Compliance to tax payments | Zhang et al. (2022) [86] |
Supplier centered responsibility | SCR | Average account payables | Zhang et al. (2022) [86] |
Community centered responsibility | COMCR | The ratio of donations to locality and operating income | Zhang et al. (2022) [86] |
Creditors centered responsibility | CRCR | Ability to pay interests and debts on time | Zhang et al. (2022) [86] |
Leverage | Lev | Debt-to-assets ratio of the firm | Cho et al. (2019) [84] |
Firm age | FA | Total age of firm in years since its inception | Moores and Yuen (2001) [87] |
Total risk | TR | Combination of systematic and unsystematic risks | Devie et al. (2020) [88] |
Firm Size | FS | Natural Log of total assets of firm | Ryu and Yu (2020) [89] |
Govt.Subsidy | Sub | Government directly and indirectly support firms to undertake CSR practices | Zhang et al. (2022) [86] |
Variables | Min | Max | Mean | St. Dev |
---|---|---|---|---|
ROA | 0.599 | 0.601 | 0.039 | 0.093 |
TbQ | 0.983 | 0.1144 | 0.011 | 5.099 |
Grow | 0.899 | 11.11 | 0.111 | 1.531 |
ECR | 0.055 | 1.99 | 0.103 | 0.010 |
GCR | 0.010 | 0.299 | 0.013 | 0.015 |
SCR | 0.501 | 21.30 | 1.025 | 0.952 |
COMCR | 0.001 | 0.021 | 0.003 | 0.002 |
CRCR | 0.155 | 80.31 | 3.88 | 1.199 |
Sub | 2.03 × 105 | 3.01 × 106 | 1.02 × 1071 | 0.92 × 107 |
LV | 0.006 | 1.301 | 0.260 | 0.163 |
FS | 41.00 | 865.00 | 442.5 | 177.8 |
FA | 6.010 | 28.00 | 15.44 | 3.02 |
TR | 0.010 | 0.075 | 0.028 | 0.007 |
Indicators | ROA | GCR | ECR | SCR | CCR | COMCR | CRCR | Sub |
---|---|---|---|---|---|---|---|---|
ROA | 1 | |||||||
GCR | 0.509 | 1 | ||||||
ECR | 0.600 *** | 0.580 ** | 1 | |||||
SCR | 0.510 *** | 0.671 *** | 0.399 | 1 | ||||
CCR | 0.501 *** | 0.761 *** | 0.499 *** | 0.499 *** | 1 | |||
COMCR | 0.521 *** | 0.781 *** | 0.699 *** | 0.399 ** | 0.499 | 1 | ||
CRCR | 0.571 * | 0.644 ** | 0.599 *** | 0.201 *** | 0.389 ** | 0.781 * | 1 | |
Sub | 0.501 *** | 0.677 *** | 0.589 *** | 0.200 * | 0.399 *** | 0.621 | 0.377 ** | 1 |
Variables | Tolerance | VIF |
---|---|---|
ROA | 0.972 | 1.028 |
TbQ | 0.976 | 1.025 |
Grow | 0.995 | 1.005 |
ECR | 0.635 | 1.574 |
GCR | 0.995 | 1.005 |
SCR | 0.586 | 1.707 |
COMCR | 0.578 | 1.731 |
CRCR | 0.479 | 1.95 |
Sub | 0.968 | 1.033 |
LV | 0.638 | 1.568 |
FS | 0.778 | 1.285 |
FA | 0.832 | 1.202 |
TR | 0.617 | 1.620 |
Ind.Var | Coefficient | St. Error | t-Static | Sig |
---|---|---|---|---|
GCR | 0.339 | 0.048 | 11.23 | 0.064 |
ECR | 0.210 | 0.170 | 16.59 | 0.080 |
SCR | 0.301 | 0.165 | 11.01 | 0.059 |
CCR | 0.390 | 0.160 | 13.60 | 0.065 |
COMCR | 0.410 | 0.029 | 12.01 | 0.075 |
CRCR | 0.299 | 0.179 | 9.83 | 0.069 |
FA | 0.333 | 0.048 | 11.59 | 0.090 |
FS | 0.389 | 0.051 | 11.77 | 0.085 |
LV | 0.455 | 0.049 | 12.34 | 0.077 |
TR | 0.289 | 0.175 | 9.79 | 0.067 |
Ind.Var | St. Error | St. Error | Coefficient | t-Static | p-Value | ||
---|---|---|---|---|---|---|---|
GCR | 0.062 | 0.062 | 0.339 | 6.01 | 0.001 *** | ||
ECR | 0.190 | 0.190 | 0.210 | 8.88 | 0.050 ** | ||
SCR | 0.203 | 0.203 | 0.301 | 5.78 | 0.045 ** | ||
CCR | 0.222 | 0.222 | 0.390 | 6.89 | 0.045 * | ||
COMCR | 0.037 | 0.037 | 0.410 | 6.01 | 0.000 | ||
CRCR | 0.200 | 0.200 | 0.299 | 5.11 | 0.043 | ||
FA | 0.061 | 0.061 | 0.333 | 6.03 | 0.003 *** | ||
FS | 0.066 | 0.066 | 0.389 | 6.12 | 0.000 | ||
LV | 0.070 | 0.070 | 0.455 | 6.96 | 0.000 | ||
TR | 0.191 | 0.191 | 0.289 | 5.11 | 0.041 ** | ||
Tests | Chi-Square | df | Sig. | ||||
Breusch Pagan Test | 1.507 | 1 | 0.220 | ||||
White test | 31.05 | 14 | 0.005 |
Ind. Var | Coefficient | t-Static | p-Value | St. Error |
---|---|---|---|---|
GCR | 0.339 | 5.99 | 0.001 *** | 0.060 |
ECR | 0.210 | 8.88 | 0.050 ** | 0.189 |
SCR | 0.301 | 5.77 | 0.043 ** | 0.201 |
CCR | 0.390 | 6.89 | 0.045 * | 0.221 |
COMCR | 0.410 | 6.99 | 0.000 | 0.035 |
CRCR | 0.299 | 5.11 | 0.043 | 0.199 |
FA | 0.333 | 6.01 | 0.001 *** | 0.059 |
FS | 0.389 | 6.10 | 0.000 | 0.065 |
LV | 0.455 | 6.95 | 0.000 | 0.069 |
TR | 0.289 | 5.10 | 0.040 ** | 0.189 |
Adjusted | 0.8001 | |||
Hausman. Stat | 0.0043 | |||
F-statistic | 34.273 | |||
Prob (F-stat.) | 0.0000 | |||
D. Watson | 1.1345 |
Ind. Variable | Coefficient | t-Static | p-Value | St. Error |
---|---|---|---|---|
GCR | 0.237 | 5.11 | 0.043 ** | 0.077 |
ECR | 0.271 | 7.71 | 0.049 ** | 0.099 |
SCR | 0.291 | 7.77 | 0.045 ** | 0.010 |
CCR | 0.250 | 6.19 | 0.047 ** | 0.113 |
COMCR | 0.420 | 7.99 | 0.000 *** | 0.037 |
CRCR | 0.288 | 5.01 | 0.045 ** | 0.101 |
FA | 0.393 | 7.81 | 0.000 *** | 0.040 |
FS | 0.375 | 7.00 | 0.000 *** | 0.039 |
LV | 0.355 | 6.77 | 0.000 *** | 0.057 |
TR | 0.218 | 5.22 | 0.035 ** | 0.177 |
AdjustedR2 | 0.7900 | |||
Hausman. Stat | 0.0041 | |||
F-statistic | 31.013 | |||
Prob (F-stat.) | 0.0000 | |||
D. Watson | 1.0945 |
Ind.Var | Coefficient | t-Static | p-Value | St. Error |
---|---|---|---|---|
GCR | 0.301 | 6.71 | 0.01 *** | 0.098 |
ECR | 0.288 | 6.31 | 0.050 ** | 0.091 |
SCR | 0.300 | 6.69 | 0.051 ** | 0.070 |
CCR | 0.290 | 6.00 | 0.05 ** | 0.081 |
COMCR | 0.400 | 7.91 | 0.000 *** | 0.057 |
CRCR | 0.299 | 6.01 | 0.050 ** | 0.100 |
FA | 0.331 | 7.51 | 0.000 *** | 0.042 |
FS | 0.305 | 7.05 | 0.000 *** | 0.039 |
LV | 0.315 | 6.15 | 0.000 *** | 0.051 |
TR | 0.259 | 5.30 | 0.031 ** | 0.141 |
AdjustedR2 | 0.8011 | |||
Hausman. Stat | 0.0047 | |||
F-statistic | 35.021 | |||
Prob (F-stat.) | 0.0000 | |||
D. Watson | 1.0999 |
Coeff | SE | t-Value | Sign | |
---|---|---|---|---|
Constant | −0.0031 | 0.0021 | −2.7187 | 0.0187 |
Sub | 1.086 | 0.0004 | 3.6514 | 0.0000 |
GCR | 0.1798 | 0.0533 | 2.2506 | 0.0335 |
GCR*Sub | 0.0291 | 0.0099 | 2.008 | 0.0400 |
R-square | 0.85 | |||
p-value | 0.0000 |
Coeff | SE | t-Value | Sign | |
---|---|---|---|---|
Constant | −0.0040 | 0.0027 | −2.9521 | 0.0189 |
Sub | 1.099 | 0.0005 | 3.7917 | 0.0000 |
ECR | 0.1889 | 0.0499 | 2.3700 | 0.0351 |
ECR*Sub | 0.0299 | 0.0109 | 2.018 | 0.0410 |
R-square | 0.86 | |||
p-value | 0.0000 |
Coeff | SE | t-Value | Sign | |
---|---|---|---|---|
Constant | −0.0030 | 0.0020 | −2.7075 | 0.0184 |
Sub | 1.097 | 0.0005 | 2.9999 | 0.0000 |
SCR | 0.1575 | 0.0529 | 2.2415 | 0.0329 |
SCR*Sub | 0.0295 | 0.0096 | 2.017 | 0.0450 |
R-square | 0.84 | |||
p-value | 0.0000 |
Coeff | SE | t-Value | Sign | |
---|---|---|---|---|
Constant | −0.0029 | 0.0019 | −2.5061 | 0.0178 |
Sub | 1.081 | 0.0005 | 3.4110 | 0.0000 |
CCR | 0.1699 | 0.0529 | 2.2401 | 0.0322 |
CCR*Sub | 0.0301 | 0.0101 | 2.0191 | 0.0500 |
R-square | 0.86 | |||
p-value | 0.0000 |
Coeff | SE | t-Value | Sign | |
---|---|---|---|---|
Constant | −0.0041 | 0.0019 | −2.9289 | 0.0199 |
Sub | 1.099 | 0.0005 | 3.9895 | 0.0000 |
COMCR | 0.1999 | 0.0589 | 2.3881 | 0.0399 |
COMCR*Sub | 0.0439 | 0.0199 | 2.919 | 0.0477 |
R-square | 0.87 | |||
p-value | 0.0000 |
Coeff | SE | t-Value | Sign | |
---|---|---|---|---|
Constant | −0.0027 | 0.0019 | −2.3155 | 0.0181 |
Sub | 1.081 | 0.0003 | 3.1419 | 0.0000 |
CRCR | 0.1555 | 0.0431 | 2.2001 | 0.0319 |
CRCR*Sub | 0.0299 | 0.0111 | 2.0199 | 0.0309 |
R-square | 0.85 | |||
p-value | 0.0000 |
Coeff | SE | t-Value | Sign | |
---|---|---|---|---|
Constant | −0.0031 | 0.0027 | −2.4055 | 0.0197 |
Sub | 1.121 | 0.0005 | 3.7718 | 0.0000 |
FA | 0.2333 | 0.0636 | 2.3071 | 0.0398 |
FA*Sub | 0.0499 | 0.0301 | 2.0589 | 0.0439 |
R-square | 0.87 | |||
p-value | 0.0000 |
Coeff | SE | t-Value | Sign | |
---|---|---|---|---|
Constant | −0.0029 | 0.0022 | −2.3359 | 0.0189 |
Sub | 1.131 | 0.0005 | 3.7989 | 0.0000 |
FS | 0.2451 | 0.0455 | 2.2015 | 0.0355 |
FS*Sub | 0.0510 | 0.0339 | 2.0208 | 0.0388 |
R-square | 0.87 | |||
p-value | 0.0000 |
Coeff | SE | t-Value | Sign | |
---|---|---|---|---|
Constant | −0.0023 | 0.0018 | −2.3005 | 0.0153 |
Sub | 1.052 | 0.0003 | 3.1111 | 0.0000 |
LV | 0.1577 | 0.0410 | 2.2000 | 0.0313 |
LV*Sub | 0.0383 | 0.0110 | 2.0188 | 0.0305 |
R-square | 0.86 | |||
p-value | 0.0000 |
Coeff | SE | t-Value | Sign | |
---|---|---|---|---|
Constant | −0.0021 | 0.0015 | −2.3000 | 0.0141 |
Sub | 1.041 | 0.0002 | 3.1010 | 0.0000 |
TR | 0.1400 | 0.0300 | 2.1101 | 0.0300 |
TR*Sub | 0.0303 | 0.0100 | 2.0121 | 0.0301 |
R-square | 0.83 | |||
p-value | 0.0000 |
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Bai, K.; Ullah, F.; Arif, M.; Erfanian, S.; Urooge, S. Stakeholder-Centered Corporate Governance and Corporate Sustainable Development: Evidence from CSR Practices in the Top Companies by Market Capitalization at Shanghai Stock Exchange of China. Sustainability 2023, 15, 2990. https://doi.org/10.3390/su15042990
Bai K, Ullah F, Arif M, Erfanian S, Urooge S. Stakeholder-Centered Corporate Governance and Corporate Sustainable Development: Evidence from CSR Practices in the Top Companies by Market Capitalization at Shanghai Stock Exchange of China. Sustainability. 2023; 15(4):2990. https://doi.org/10.3390/su15042990
Chicago/Turabian StyleBai, Keke, Farid Ullah, Muhammad Arif, Sahar Erfanian, and Saima Urooge. 2023. "Stakeholder-Centered Corporate Governance and Corporate Sustainable Development: Evidence from CSR Practices in the Top Companies by Market Capitalization at Shanghai Stock Exchange of China" Sustainability 15, no. 4: 2990. https://doi.org/10.3390/su15042990