Abstract
This paper examines how stock market liberalization affects corporate social responsibility (CSR) performance. Using the launch of the Shanghai-Hong Kong Stock Connect (SHSC) Program as a quasi-natural experiment, which allows a subgroup of stocks to be traded in two markets, we find that stock market liberalization encourages CSR performance in mainland China and that this effect is more pronounced for firms that can benefit more from the program, including those with long-term eligibility for dual-market transactions or those subject to less institutional pressures. Further evidence suggests that the relaxation of financial constraints, improved corporate governance and enhanced corporate reputation may be three plausible channels through which stock market liberalization improves CSR. Overall, through our unique setting, we provide new insights into the real effects of stock market liberalization on firms’ CSR performance.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of International Financial Markets, Institutions and Money
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
