Author(s)

YaPing Wu

Affiliation(s)

Zhujiang College, South China Agricultural University,Guangzhou 510900, Guangdong, China.

Corresponding Author

YaPing Wu

ABSTRACT

Corporate Social Responsibility (CSR) has become a crucial part of modern business strategies. This paper aims to explore the impact of economic policy uncertainty on corporate CSR activities, and further analyze the role of factors such as firm size, financial leverage, profitability, and growth opportunities in CSR disclosure. Using data from A-share listed companies in China, a multiple regression model was employed for empirical analysis. The results show that economic policy uncertainty has a significant negative impact on CSR activities, indicating that uncertainty in the policy environment reduces firms’ CSR investments. Firm size and profitability positively influence CSR activities, suggesting that larger companies and more profitable firms are more likely to engage in CSR. Financial leverage and growth opportunities do not have a significant impact on CSR, reflecting that financial conditions and market opportunities influence CSR decisions less than expected. The inclusion of industry and year fixed effects effectively controls for systemic differences across industries and over time, making the model results more robust. These findings provide valuable insights for firms in formulating CSR strategies and offer theoretical support for policymakers to improve policy environments that encourage corporate social responsibility.

KEYWORDS

Corporate social responsibility (CSR); Economic policy uncertainty; Corporate decision-making; Socio-economic context of china

CITE THIS PAPER

YaPing Wu. Does economic policy uncertainty affect corporate social responsibility investment? evidence from listed companies in China. Journal of Trends in Financial and Economics. 2024, 1(1): 39-42. DOI: 10.61784/jtfe3008.

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