TITLE:
Private Entrepreneurs of Communist Party Members and Corporate Social Responsibility: Evidence from Chinese Private Enterprise Survey
AUTHORS:
Jianying Li, Weiqi Liu, Dongliang Yuan
KEYWORDS:
Communist Party Member, Communist Culture, Corporate Social Responsibility, Private Enterprise
JOURNAL NAME:
Theoretical Economics Letters,
Vol.10 No.3,
June
22,
2020
ABSTRACT: This paper examines whether private entrepreneurs
with communist party member status affect corporate social responsibility (CSR)
performance of private enterprises. Our empirical result reveals that firms led
by private entrepreneurs of communist party members are significantly
associated with higher CSR score. The result is robust to confronting several
sources of endogeneity, e.g., re-examining the result using propensity score
matching (PSM), entropy balancing (EB) and Heckman two-stage estimation,
removing the influence of local religious culture. Further, the
observed positive relation is particularly sharper for firms with party
organization embedding and a good external legal environment. Our findings
highlight entrepreneur political affiliation as an important driver of socially
responsible corporate decision making.