The combined effects of innovation and corporate social responsibility on firm financial risk

IF 9.4 3区 管理学 Q1 BUSINESS, FINANCE Journal of International Financial Management & Accounting Pub Date : 2021-06-21 DOI:10.1111/jifm.12135
Bai Liu, Tao Ju, Simon S.S. Gao
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引用次数: 35

Abstract

Prior literature has largely dealt with the effect of either corporate social responsibility (CSR) or innovation on firm financial risk. No earlier research has examined the combined effect of a firm's simultaneous pursuit of CSR and innovation on firm financial risk. This study investigates the combined effects with a view to fostering our understanding of relationships of CSR and innovation with financial risk. Using the patent application and CSR data of 2,174 Chinese listed firms over the period 2010–2016, this study finds that firms with higher levels of imitative innovation and good CSR performance exhibit higher financial risk. The results remain after a series of robustness tests including the use of an alternative measure of firm financial risk and CSR. The results indicate that firms with a higher level of imitative innovation exhibit greater financial risk; however, the risk cannot be mitigated by firms' good CSR performance. CSR performance helps firms boost the positive image of a “good citizen” and reduce firm financial risk; however, the combined effects of CSR and imitative innovation trigger higher financial risk. The results of this study support the umbrella theory of CSR that exacerbates the moral hazard for those firms that rely on imitative innovation.

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创新与企业社会责任对企业财务风险的共同影响
先前的文献主要讨论企业社会责任(CSR)或创新对企业财务风险的影响。此前没有研究考察企业同时追求企业社会责任和创新对企业财务风险的综合影响。本研究旨在探讨企业社会责任与创新与财务风险之间的关系。利用2010-2016年2174家中国上市公司的专利申请和企业社会责任数据,研究发现,模仿创新水平越高、企业社会责任绩效越好的企业财务风险越高。在一系列稳健性测试之后,结果仍然存在,包括使用企业财务风险和企业社会责任的替代措施。结果表明:模仿创新水平越高的企业财务风险越大;然而,企业良好的企业社会责任绩效并不能减轻风险。企业社会责任绩效有助于提升企业“好公民”的正面形象,降低企业财务风险;然而,企业社会责任和模仿创新的共同作用引发了更高的财务风险。本研究的结果支持了企业社会责任的保护伞理论,该理论加剧了那些依赖模仿创新的企业的道德风险。
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来源期刊
CiteScore
9.10
自引率
2.00%
发文量
23
期刊介绍: The Journal of International Financial Management & Accounting publishes original research dealing with international aspects of financial management and reporting, banking and financial services, auditing and taxation. Providing a forum for the interaction of ideas from both academics and practitioners, the JIFMA keeps you up-to-date with new developments and emerging trends.
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