1Xiamen University Tan Kah Kee College, Zhangzhou, China
Journal of Business and Management Sciences.
2021,
Vol. 9 No. 4, 145-155
DOI: 10.12691/jbms-9-4-1
Copyright © 2021 Science and Education PublishingCite this paper: Chih-Yi Hsiao, Hao-Wei Chen. Application of Corporate Social Responsibility -- Taking Chinese Listed Companies in the COVID-19 as an Example.
Journal of Business and Management Sciences. 2021; 9(4):145-155. doi: 10.12691/jbms-9-4-1.
Correspondence to: Chih-Yi Hsiao, Xiamen University Tan Kah Kee College, Zhangzhou, China. Email:
cyhsiao@xujc.comAbstract
During the period of COVID-19, many enterprises were supported by the consumers because they carried out corporate social responsibility behavior. However, is corporate social responsibility a panacea for business strategy? This study focuses on a sample of Chinese listed companies from 2019 to 2020 to explore the relationships among corporate social responsibility, financial constraints, and financial performance. In addition, we discuss five factors affecting financial constraints. We also analyze the types of enterprises that can improve their financial performance by implementing corporate social responsibility keeping in mind the factors that lead to a high degree of financial constraint. The results indicate that: 1. The degree of financial constraints has a negative and significant impact on financial performance; 2. There is a reverse relationship between the degree of financial constraints and the effectiveness of corporate social responsibility measures; 3. Enterprises with high financial constraints (due to lower financial slack and revenue growth rates) can significantly improve their financial performance through the implementation of effective corporate social responsibility programs. 4. Enterprises with high financial constraints, caused by financial slack and revenue growth rate, can significantly improve their financial performance by implementing corporate social responsibility programs.
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