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author:

Long, H. (Long, H..) [1] | Lai, G. (Lai, G..) [2] | Jiang, J. (Jiang, J..) [3] | Liu, R. (Liu, R..) [4]

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Abstract:

This paper investigates the impact of top-down amplification of economic growth targets on corporate social responsibility (CSR) performance. We find a significant negative relationship between the amplification and CSR performance. We further explore the underlying mechanisms for such an effect and find that top-down amplification of economic growth targets aggravates firms' operating risk and increases their financial constraints, thereby leading to a decline in CSR performance. Further analysis shows that the effect is more pronounced among firms with less economically important, inefficient external and internal monitoring, in non-state-owned enterprises (non-SOEs), and those with lower facilitation payments. Additionally, we also find that firms with lower CSR performance are more affected by the top-down amplification of economic growth targets in terms of worse operating performance and lower total factor productivity. Overall, our findings provide new insights into the consequences of the top-down amplification of economic growth targets in emerging markets, thus expanding and complementing the existing literature. © 2025

Keyword:

CSR performance GDP targets Top-down amplification Total factor productivity

Community:

  • [ 1 ] [Long H.]School of Economics and Management, Fuzhou University, China
  • [ 2 ] [Lai G.]School of Economics and Management, Fuzhou University, China
  • [ 3 ] [Jiang J.]School of Business Administration, South China University of Technology, China
  • [ 4 ] [Liu R.]School of Finance, Zhongnan University of Economics and Law, China

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Source :

International Review of Financial Analysis

ISSN: 1057-5219

Year: 2025

Volume: 101

7 . 5 0 0

JCR@2023

Cited Count:

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ESI Highly Cited Papers on the List: 0 Unfold All

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Chinese Cited Count:

30 Days PV: 2

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