1. Lie of the Weak: Inconsistent Corporate Social Responsibility Activities of Chinese Zombie Firms
- Author
-
Shaozhen Han, Zhou Xun, Michel Lubrano, Guoming Li, Northwest University (Xi'an), Jiangxi University of Finance and Economics (JUFE), Aix-Marseille Sciences Economiques (AMSE), École des hautes études en sciences sociales (EHESS)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS)-Aix Marseille Université (AMU), The National Natural Science Foundation of China (No. 71764008), The Ministry of Education of Humanities and Social Science Project (No. 17YJC790046), The Shaanxi Social Science Planning Fund Program (No. 2019D010), The Shaanxi Province Department of Education special scientific research project (No. 17JK0741), Nanjing University of Finance and Economics (NUFE), National Natural Science Foundation of China (No. 71764008, Shaanxi Social Science Planning Fund Program (No. 2019D010), Shaanxi Province Department of Education special scientific research project (No. 17JK0741), École des hautes études en sciences sociales (EHESS)-Aix Marseille Université (AMU)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS), and Lhuillier, Elisabeth
- Subjects
020209 energy ,Strategy and Management ,Control (management) ,Zombie ,reports ,Accounting ,02 engineering and technology ,Industrial and Manufacturing Engineering ,[SHS]Humanities and Social Sciences ,Order (exchange) ,0202 electrical engineering, electronic engineering, information engineering ,Endogeneity ,[SHS.ECO] Humanities and Social Sciences/Economics and Finance ,0505 law ,General Environmental Science ,corporate social responsibility ,Renewable Energy, Sustainability and the Environment ,business.industry ,05 social sciences ,Subsidy ,Building and Construction ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,fulfillment ,zombie firms ,050501 criminology ,Corporate social responsibility ,Heckman correction ,Listing (finance) ,business ,disclosure ,hypocrisy - Abstract
International audience; This study investigates the differences between zombie firms and non-zombie firms in corporate social responsibility activities such as reporting, disclosure and fulfillment. Using Chinese listing company data collected from 2009 to 2016, we apply a three stage model with a double Heckman correction to deal with potential self-selection/endogeneity bias and to measure the differences consistently. We found that zombie firms are less willing to release standalone corporate social responsibility reports than non-zombie firms. Among companies that release standalone corporate social responsibility reports, the corporate social responsibility disclosure of zombie firms is at least not worse than non-zombie firms, but the corporate social responsibility fulfillment is significantly lower. We conclude from this gap between disclosure and fulfillment to the hypocritical behavior of zombie firms, due to the absence of control in corporate social responsibility. We suggest that government should enhance supervision over zombie firms’ corporate social responsibility activities and subsidies towards them in order to lower their economic damage. Supplementary analyses provide some clues concerning the heterogeneity of inconsistence in term of external support characteristics, ownership and censorship which require further studies.
- Published
- 2020
- Full Text
- View/download PDF