Does community environment matter to corporate social responsibility?

Dejun Wu*, Chen Lin, Sibo Liu

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review

26 Citations (Scopus)


How does the preference of local stakeholders shape firm's corporate social responsibility (CSR)? Using a twenty-year U.S. sample, this paper examines the effects of the community demographic and cultural environment on CSR. We find that firms located in counties with more senior residents and/or higher levels of religiosity display higher degree of corporate social responsibility. In addition, we find the positive effects of local seniors and religiosity are stronger for less financial constrained firms. The result is robust after controlling for firm fixed effects, operating state trends and incorporation state trends. Taken together, our evidence supports a stakeholder theory of corporate social responsibility.
Original languageEnglish
Pages (from-to)127-135
Number of pages9
JournalFinance Research Letters
Publication statusPublished - Aug 2016


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