State-owned capital and corporate social responsibility of private-holding companies: evidence from China

The undertaking of corporate social responsibility (CSR) has become a topic of widespread concern in society. Utilising a sample of 9872 private-holding companies listed on the Shanghai and Shenzhen securities markets from 2009 to 2019, this study examines the impact of state-owned capital on CSR activities. We find that CSR is enhanced when the proportion of state-owned capital in a private-holding listed company exceeds 5 percent. The appointment of directors, supervisors, and senior management by state-owned shareholders, and the participation of state-owned investment in company operation further promote the fulfilment of CSR in private-holding listed companies. This research not only enriches the literature on the economic consequences of state-owned equity holdings in private companies, but also provides empirical evidence regarding the outcomes of improvement of corporate governance mechanisms.