Multiple large shareholders and corporate social responsibility reporting

• Published in: Emerging markets review Vol. 38; pp. 287 - 309
• Main Authors: Cao, Feng, Peng, Songlan (Stella), Ye, Kangtao
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01-03-2019
• Subjects: Corporate social responsibility; CSR reporting; Large shareholder identity; Multiple large shareholders; Shareholder concentration; Shareholder power balance; Multiple large shareholders; Corporate social responsibility; Large shareholder identity; Shareholder power balance; CSR reporting; Shareholder concentration
• ISSN: 1566-0141; 1873-6173
• DOI: 10.1016/j.ememar.2019.02.004

This study examines whether multiple large shareholders play a role in corporate social responsibility (CSR) reporting. Employing data from Chinese listed firms during 2008–2015, we find both the shareholding and the identity of large shareholders are associated with CSR reporting. Specifically, we show the higher shareholding of the controlling shareholders, the poorer quality of CSR reporting. However, this entrenchment effect is mitigated when the power is more balanced between the controlling and non-controlling large shareholders. Further examination shows the power balancing effect is more significant when the controlling and non-controlling shareholders are of the same identities.
•This study examines the role of large shareholders in CSR reporting•We use Large-scale eight-year data of Chinese A-share firms•We find controlling shareholders has entrenchment effect in CSR reporting•We also find non-controlling large shareholders mitigates the entrenchment effect