Human capital and corporate social investment: The effect of public policy

Abstract

Taking advantage of a large sample of China's A-share listed companies from 2011 to 2022, this research examines the impact of human capital on corporate social investment. We provide robust evidence that employees with a higher sense of responsibility enhance corporate social investment. Moreover, we demonstrate that the positive impact is amplified by supportive public policy. Our findings are robust to a battery of sensitivity tests. In sum, this research contributes to the literature on corporate social responsibility as well as provides valuable practical implications policymakers.