Inhibiting or promoting: The industry heterogeneity of board interlocks and corporate social responsibility in China

Abstract

The relationship between board interlocks and corporate social responsibility (CSR) has been much debated, and the limited understanding of the heterogeneity of board interlocks is considered a significant reason. Based on resource dependency theory, this study aims to investigate the impact of the heterogeneity resulting from interlocked directors’ presence in different industries on CSR. This study used a sample of Chinese-listed companies from 2012 to 2019 and employed multivariate regression analysis models. The empirical results suggested that the industry heterogeneity of board interlocks positively impacts CSR. Furthermore, the impact of industry heterogeneity is more significant in state-owned enterprises (SOEs) or companies that receive greater media attention in the Chinese context. This study contributed to the literature by confirming the importance of industry heterogeneity of board interlocks and provided some managerial implications for companies to promote CSR by selecting specific directors.