Corporate social responsibility and corruption risk: a global perspective
Article
Article Title | Corporate social responsibility and corruption risk: a global perspective |
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ERA Journal ID | 18570 |
Article Category | Article |
Authors | Krishnamurti, Chandrasekhar (Author), Shams, Syed (Author) and Velayutham, Eswaran (Author) |
Journal Title | Journal of Contemporary Accounting and Economics |
Journal Citation | 14 (1), pp. 1-21 |
Number of Pages | 21 |
Year | 2018 |
Publisher | Elsevier |
Place of Publication | United Kingdom |
ISSN | 1815-5669 |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.jcae.2018.02.002 |
Web Address (URL) | https://www.sciencedirect.com/science/article/pii/S1815566918300043 |
Abstract | This paper extends our knowledge on corporate corruption risk by examining whether and to what extent corporate social responsibility (CSR) affects firm-level corruption risk. Using a cross-country sample of major multinational firms, we find that firm-level CSR mitigates corruption risk. On closer examination, we find that the relationship between CSR and corruption risk is mediated by country-level variables such as institutional quality, protection of minority shareholders’ rights, stock market development and freedom of the press. Further, we find that in emerging countries, CSR mitigates corruption risk only when the country-level institutional quality is high and citizens enjoy press freedom. Our findings suggest that both formal institutions and the quality of civil society influence the effect of CSR on corruption risk. Our results remain robust to controls for endogeneity and potential sample selection bias. |
Keywords | corruption risk; corporate social responsibility; moral capital; shareholders’ rights; press freedom |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 350202. Finance |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | University of South Australia |
School of Commerce | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q4947/corporate-social-responsibility-and-corruption-risk-a-global-perspective
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