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Shareholder Conflict as a Determinant of Corporate Social Responsibility Commitment for Shared Growth

Authors
Sul, WonsikChoi, Hyang MiQuan, Ri Shu
Issue Date
Sep-2014
Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
Keywords
control-ownership disparity; corporate governance; CSR commitment; foreign block investors; shareholder conflict
Citation
EMERGING MARKETS FINANCE AND TRADE, v.50, no.5, pp 97 - 110
Pages
14
Journal Title
EMERGING MARKETS FINANCE AND TRADE
Volume
50
Number
5
Start Page
97
End Page
110
URI
https://scholarworks.sookmyung.ac.kr/handle/2020.sw.sookmyung/10805
DOI
10.2753/REE1540-496X500506
ISSN
1540-496X
1558-0938
Abstract
In this study, we seek to explore shareholder conflicts as a determinant of large firms' corporate social responsibility (CSR) commitment for shared growth with subcontractors. Using a sample of 232 firms in the Korean chaebols during 2006'12, we find that CSR commitment is negatively related to controlling shareholders' cash flow rights but positively related to control-ownership disparity. We also find that foreign blockholders mitigate the positive relationship between CSR commitment and control-ownership disparity. This study offers a view of how controlling shareholders and blockholders protect their interests while enhancing their reputations as good citizens through CSR commitment.
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