How do infectious diseases affect corporate social responsibility? Evidence from China
Journal of Asia Business Studies
ISSN: 1558-7894
Article publication date: 31 May 2022
Issue publication date: 28 February 2023
Abstract
Purpose
The recent decades have witnessed the rising frequency and severity of infectious diseases in the international context and their detrimental impacts on the corporate world as a result of growing interconnection among nations. This study aims to examine the effect of previous infectious diseases (H5N1, H1N1 and MERS) on the disclosure of corporate social responsibility (CSR) among listed Chinese firms from 2006 to 2017.
Design/methodology/approach
Firm-level financial and CSR data of Chinese non-financial listed firms are from the China Stock Market and Accounting Research database. The data on corporate governance are collected from Bloomberg financial database. Three infectious diseases under examination are H5N1 (2006–2007), H1N1 (2009–2010) and MERS (2015–2016). This study uses the fixed-effect estimations to account for time-invariant differences among the firms in the sample.
Findings
The results reveal that Chinese firms disclose less CSR information during the time of public health crises, and this impact is more pronounced in small-sized and low-growth firms. Besides, the analysis suggests that Chinese firms are becoming more resilient to infectious diseases.
Research limitations/implications
The findings provide implications for corporate stakeholders to understand corporate policies under uncertainties and inform vulnerable businesses to develop an appropriate CSR strategy in preparation for future health calamities.
Originality/value
This study provides new insights into how businesses react to previous epidemics and pandemics at different scales other than the COVID-19 pandemic. Besides, the findings shed light on the dynamic of firms’ CSR engagement during and after the infectious outbreaks.
Keywords
Acknowledgements
This research is partly funded by University of Economics Ho Chi Minh City (UEH), Vietnam.
Citation
Hoang, H.V., Hoang, K., Ho, L.T. and Ha, O.K. (2023), "How do infectious diseases affect corporate social responsibility? Evidence from China", Journal of Asia Business Studies, Vol. 17 No. 2, pp. 462-476. https://doi.org/10.1108/JABS-08-2021-0353
Publisher
:Emerald Publishing Limited
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