Venture capital and corporate social responsibility

Cheng Cheng; Yongqiang Chu; Zijie Deng; Bo Huang

doi:10.1016/j.jcorpfin.2022.102208

Journal of Corporate Finance Vol. 75 2022

Venture capital and corporate social responsibility

Cheng Cheng¹; Yongqiang Chu²; Zijie Deng³; Bo Huang⁴

¹ Hunan University · ² University of North Carolina at Charlotte · ³ University of Cambridge · ⁴ Renmin University of China

Abstract

We examine the impact of venture capital (VC) on corporate social responsibility (CSR) performance in China. Exploiting the timing of VC exit, we find that the CSR performance of VC-backed companies improves after the exit of VC. Using the age of VC funds as an instrument for VC exit, we find that the effect is likely to be causal. Further analyses suggest that the effect is largely driven by inexperienced, badly performing, and less reputable VCs.

DOI: 10.1016/j.jcorpfin.2022.102208
Volume: 75
Pages: 102208
Language: en
Sources: bibtex:phds-export.bib openalex crossref

Venture capital and corporate social responsibility

Abstract

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