Management tone and corporate social responsibility: Evidence from Chinese listed companies' involvement in rural revitalization

Abstract

This study delves into the correlation between management tone in annual reports and corporate engagement in rural revitalization by analyzing data from publicly listed Chinese companies between 2016 and 2022. Our investigation reveals a significant positive correlation between an optimistic management tone and elevated corporate involvement in rural revitalization efforts. The findings underscore that a management's positive and forward-looking stance can stimulate enhanced corporate contributions toward rural development, with a more pronounced effect observed in case of non-state-owned entities and those under financial constraints. Furthermore, evidence suggests that the manipulation of management tone negatively affects corporate engagement in rural revitalization. These insights accentuate the critical role of management tone in shaping corporate social responsibility (CSR) initiatives, particularly within the realm of rural development. The study has strategic implications for corporate governance and communication, given that management tone can influence CSR activities and strategies, and suggests policy avenues for encouraging corporate participation in rural revitalization.