Corporate Social Responsibility, Product Market Competition and Financial performance: Evidence from Listed Companies in China

Abstract

This paper explored the impact of corporate social responsibility (CSR) and product market competition (PMC) on the financial performance of listed companies in China, using the panel data of 1,100 Chinese A-share companies listed on the Shanghai and Shenzhen Stock Exchanges over the period from 2009 to 2014. The results show that for listed companies in china: (1) CSR can significantly and positively impact the short-term and long-term financial performance of listed companies in China. (2) PMC can only enhance corporate short-term financial performance, but has a significantly negative impact on corporate long-term financial performance. (3) The synergy between CSR and PMC can significantly and negatively affect both corporate short-term and long-term financial performance.