The Impact of TMT Political Connection on Corporate Performance-with CSR as the Mediation

Abstract

Background and Aim: The recent release of corporate social responsibility (CSR) reports by companies has once again attracted public attention to the performance of CSR. CSR, as an important aspect that affects a company's financial performance, is highly valued. This research is based on the resource theory and upper-echelons theory to study the impact of Top Management Team (TMT) political connections on CSR strategies and corporate performance. Materials and Methods: Taking A-share listed companies in Shanghai and Shenzhen from 2010 to 2019 as research samples, a multiple linear regression model is used to empirically analyze and test the mechanism of the effects of TMT political connection on CSR and corporate performance. Results: The research results indicate that TMT's political connection has a positive impact on CSR. TMT political connection has a positive impact on corporate performance, and CSR plays a mediating role between TMT political connection and corporate performance. Conclusion: The findings have important implications for a deeper understanding of the motives and economic consequences of CSR, and also help enterprises adjust their corporate governance structure, enhance their strategic awareness of consciously fulfilling CSR, and ultimately promote the sustainable development of enterprises.