RT Article
T1 The Signaling Effect of Corporate Social Responsibility in Emerging Economies
JF Journal of business ethics
VO 134
IS 3
SP 479
OP 491
A1 Su, Weichieh
A1 Peng, Mike W. 1968-
A1 Tan, Weiqiang
A1 Cheung, Stephen Y. L.
A2 Peng, Mike W. 1968-
A2 Tan, Weiqiang
A2 Cheung, Stephen Y. L.
LA English
YR 2016
UL https://ixtheo.de/Record/1785657151
AB What signals do firms in emerging economies send to stakeholders when they adopt corporate social responsibility (CSR) practices? We argue that in emerging economies, firms that adopt CSR practices positively signal investors that their firms have superior capabilities for filling institutional voids. From an institution-based view, we hypothesize that the institutional environment moderates the signaling effect of CSR on a firm’s financial performance. Based on a sample of firms from ten Asian emerging economies, we find a positive relationship between CSR practices and financial performance. This positive relationship is stronger in the less developed capital market than in the more developed one. The financial benefits of CSR practices are also more salient in the low information diffusion market than in the high one. We emphasize that signaling theory and the institution-based view can jointly contribute to the CSR literature.
K1 Institutional environments
K1 Institutional voids
K1 Corporate Social Responsibility
K1 Signaling theory
DO 10.1007/s10551-014-2404-4