Does venture capital improve corporate social responsibility performance?

In recent years, market agents have paid more attention to firm-level sustainable developments, but the economic effects of venture capital on corporate social responsibility (CSR) performance are not clear. We empirically investigated this issue using data from Chinese nonfinancial A-share listed f...

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Bibliographic Details
Published in:International review of economics & finance 2023-11, Vol.88, p.1138-1150
Main Authors: Luo, Ronghua, Zhao, Baofang, Han, Chunjia, Wang, Sen
Format: Article
Language:English
Subjects:
Agency theory
Corporate social responsibility (CSR)
Imprinting theory
Internal control quality
Venture capital
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Summary:In recent years, market agents have paid more attention to firm-level sustainable developments, but the economic effects of venture capital on corporate social responsibility (CSR) performance are not clear. We empirically investigated this issue using data from Chinese nonfinancial A-share listed firms between 2010 and 2019. We found that venture capital participation may reduce the CSR performance of portfolio companies (e.g., SMEs), and the quality of internal control (ICQ) is an effective mechanism for venture capital to affect CSR performance. We offer new insights into the relationship between venture capital and CSR in emerging markets.
ISSN:1059-0560
1873-8036
DOI:10.1016/j.iref.2023.07.070