Corporate Social Responsibility and the Risk of Stock Price Crash Based on A-Share Listed Company

Abstract

With the innovation of business environment and management concept, more and more enterprises in Asia and emerging markets regard corporate social responsibility (CSR) as a responsibility they should bear. Many enterprises have also established CSR committees to compile CSR reports. This paper tests the relationship between corporate social responsibility (CSR) and the stock price crash risk of A-share listed companies. We select the relevant data of Listed Companies in the Shanghai and Shenzhen Stock Exchange from 2015 to 2020 as the sample, then the CSR performance of each company is quantified by the scores given by Hexun Website from 2015 to 2020. The empirical results show that corporate social responsibility significantly alleviates the risk of collapse of the China stock market.