英文摘要 |
The view on the impact of corporate social responsibility (CSR) on firm values is inconsistent. This study uses the corporate governance index proposed by Chen et al. (2007) and the CSR index of Chen et al. (2013) to examine how corporate governance structures affect the CSR, firm values, and operating performance. After controlling for endogeneity problem, regression results show that sound corporate governance mechanisms efficiently monitor firms to engage in CSR activities and mitigate agency problem, which in turn improves cost efficiency, and increases operating performance and firm values. Furthermore, firms characterized by bigger board size, higher board independence or higher institutional ownership have better operational performance in CSR after controlling for firm characteristics, industrial and year effect. Overall, our findings support that sound corporate governance mechanisms help implementation of CSR, and furthermore enhance operating performance and core competitiveness. In contrast, firms without sound corporate governance mechanisms rashly engage in CSR activities, resulting in the loss of firm values and shareholders' equity. |