Corporate Social Responsibility Practices and Financial Performance of New Ventures: The Moderating Role of Government Support

Abstract

This study enhances our comprehension of the link between corporate social responsibility (CSR) practices and financial performance in the context of new ventures. Specifically, it investigates the impact of primary and secondary stakeholder CSR practices on the financial performance of new ventures. It also examines the moderating roles of direct and indirect government support on the effect of secondary stakeholder CSR practices on new ventures’ financial performance. The data collected from manufacturing firms in China demonstrate the following: (1) primary stakeholder CSR practices can promote the financial performance of new ventures; (2) compared with established firms, the negative effect of secondary stakeholder CSR practices on the financial performance of new ventures is stronger; (3) only indirect government support can positively moderate the relationship between secondary stakeholder CSR practices and new ventures’ financial performance, and such a moderating effect is stronger than that in established firms.