Corporate social responsibility, stakeholders’ governance and idiosyncratic risk

Abstract

This paper examines the relationship between corporate social responsibility (CSR) and idiosyncratic risk and tests the impact of stakeholder governance on the relationship between CSR and idiosyncratic risk. Selecting all A-share listed companies in Shanghai and Shenzhen from 2017 to 2021 as the research subjects. It is found that: CSR can effectively reduce the level of idiosyncratic risk; the governance of investors, creditors, employees, and consumers strengthens the inhibiting effect of CSR on idiosyncratic risk, and the governance of suppliers weakens the inhibiting effect of CSR on idiosyncratic risk.