Investee peers and corporate social responsibility
by Xinhao Qiao
THESIS
2019
M.Phil. Management
vii, 40 pages ; 30 cm
Abstract
As cross ownership among firms become quite prevalent, firms are faced with competitions
not only from the industry peers but also from investee peers who share common shareholders
with them. To compete for limited capital resource, firms refer to investee peers’ behaviors and
initiate appropriate behaviors to prevent shareholders exiting. In this study, we investigate how
firms react to their investee peers’ corporate social responsibility (CSR) and find that high level
CSR performance of investee peers will motivate focal firm to pursue better CSR. Besides this,
firms with more dedicated blockholders are more likely to consider investee peers’ behaviors
and enhance CSR. And the potency of exit threat from blockholders drives the investee peer
effects among firms.
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