Corporate social responsibility, family involvement, and stock price crash risk

• DOI: 10.1002/csr.2414
• Publication Date: 2022-11-11T11:21:43Z
• Authors: Minghui Yang; Yan Wang; Lu Bai; Petra Maresova
• Keywords: 0502 economics and business; 05 social sciences; 10. No inequality; 12. Responsible consumption

Abstract This study responds to the call in Vazquez's (2018) by providing more empirical evidence on ethical issues family business. Drawing from agency theory, we provide new about “CSR – stock price crash risk” nexus examining moderating effect of involvement. With a focus Chinese capital market, find that corporate social responsibility (CSR) negatively affects risk. Such negative correlation is stronger for firms as compared with nonfamily firms. Three proxies involvement, termly member CEO, lower proportion variable compensation and greater control, can strengthen alleviating CSR Nevertheless, second‐generation successor executive does not exert any effect. Our findings advance comprehension “CSR‐crash business viewpoint emphasize important role stabilizing market.