The Effect Of Managerial Ownership On Corporate Social Responsibility

In recent years,corporate social responsibility has received more and more attention from companies.However,the level of corporate social responsibility in China is still at its infancy.Therefore,we need to explore what factors will affect corporate social responsibility activities and how to improve corporate social responsibility.As the managers and shareholders of the enterprise,the executive owners have a dual identity and play an important role in the strategic decision-making of enterprises.Previous scholars tend to study the influence of managerial ownership on corporate financial decision-making and financial performance,so in the time of the corporate social responsibility is increasingly of popularity,how will managerial ownership affect corporate social responsibility decisions? In different external governance situations,how will the relationship between managerial ownership and corporate social responsibility change?Using the A-share listed companies,which are disclosed in RKS database from 2012 to 2016 as samples,we use the method of OLS to examine the impact of managerial ownership on corporate social responsibility on the basis of principal-agent theory,information asymmetry theory,reputation theory and legitimacy theory.The research shows that there is an inverse U-shape relationship between managerial ownership and corporate social responsibility(CSR),i.e.,there is a critical value for managerial ownership,when managerial ownership is lower than the critical value,increased managerial ownership can actively promote corporate social responsibility;However,this relationship is reversed after the managerial ownership exceeds the critical value.In the further consideration of the influence of media attention and institutional environment on the relationship between managerial ownership and corporate social responsibility,the research finds that the inverse U-shape relationship between managerial ownership and corporate social responsibility exists in both firms with lower/higher media att ention and worse/better institutional environment.In particular,firms with lower media attention or better institutional environment are subject to a higher critical value than firms with higher media attention or worse institutional environment,that is,the convergence of the interests of the executive is bigger for firms with lower media attention or better institutional environment.In addition,in the further study of this article,the differences in the relationship between managerial ownership and corporate social responsibility among different industry-sensitive companies are examined.The results show that only in industries that are sensitive to corporate social responsibility,the influence of managerial ownership on corporate social responsibility is inverted U-shaped.Finally,according to the research results of this paper,relevant policy recommendations are proposed,namely,optimizing the design of executives holding mechanism,improving the level of corporate social responsibility,and ac tively promoting the healthy development of the media industry,creating a good institutional environment for the enterprise.