Bank Connections and Corporate Social Responsibility: Evidence from Chinese Targeted Poverty Alleviation

Fanjia Yang¹, Shuzheng Hao², Ding Jin^3*Peirong He²

¹School of Statistics and Mathematics, University of Finance and economics, Beijing, China

²School of Finance, Nankai University, Tianjin, China

³College of Economics and Trade, Zhongkai University of Agriculture and Engineering, Guangzhou, China

^*Correspondence: Ding Jin, E-mail: jinding1999zk@sina.com

Received: 2024-05-11Revised: 2024-05-18Accepted: 2024-05-20Published: 2024-05-21

J. Int. Eco. Glo. Gov. 2024, 1(1), 90-104; https://doi.org/10.12414/j.jiegg.202401.01005

Abstract：

We discuss the relationship between bank connections (BC) and corporate social responsibility (CSR). We find that the presence of BC is expected to increase the level of CSR by 0.4%. The results hold after a number of robustness tests. In addition, we also discuss the role of information asymmetry and financial constraints and find that BC can mitigate both information asymmetry and financial constraints faced by firms, thereby exerting a positive impact on CSR. Furthermore, we also find that a higher level of economic development can stimulate the fulfilment of CSR.

Keywords: Bank Connections, Corporate Social Responsibility, Targeted Poverty Alleviation

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