Abstract
In the analysis, we integrated stakeholder and agency theories to explore the connection between corporate social responsibility (CSR) and sustainable financial development by considering the moderating effect of ownership structure. After empirical analysis, we found the following conclusions. First, the short-term and long-term economic performance is positively affected by CSR, which leads to sustainable financial development. Second, ownership circulation has a positive relationship with economic performance in the short run, which short-term profit increases as ownership circulation strengthens. Third, the effect of CSR on short-term economic performance is moderated by ownership structure. Excessive concentrated ownership may lead to decisions that do not satisfy all key stakeholders and may reduce the positive effect of CSR on economic performance. Finally, we suggest that Chinese energy companies should pay more attention to improving corporate social responsibility to maintain good economic performance and develop sustainable competitive advantage. Meanwhile, companies should optimize ownership concentration to avoid weakening the positive effects of social responsibility on short-term economic performance.
Highlights
Due to the deteriorating international economic environment and declining domestic demand, operations of the Chinese energy industry are difficult
sustainable growth rate (SGR) ranges from −3.9340 to 8.1078 with a mean value of 0.0639, which shows that the listed energy companies have a low average growth capacity using current financial strategies and frames of reference
The objective of this study was to analyze whether social responsibility and ownership structure are related to Chinese energy companies’ performance and further evaluate the impact of these variables on economic performance
Summary
Due to the deteriorating international economic environment and declining domestic demand, operations of the Chinese energy industry are difficult. Reports of the Chinese energy industry in 2016 noted that loss of traditional energy enterprises grew 36.4% by the end of 2015, the profitability of renewable energy enterprises improved substantially. Because the industry has declined, companies are challenged to optimize organization and structure as well as improve competitiveness and profitability. Many have begun to build environmentally friendly operations and increase energy efficiency to reduce costs and improve profits. They are paying more attention to employees, consumers, and commercial partners who can help them to develop a sustainable competitive advantage. Corporate social responsibility (CSR) is generating growing effects on the development of China’s energy industry
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