The influence of CSR on enterprise value: the case of China's real estate industry

In: Business process management journal, Band 30, Heft 6, S. 1976-1994

Abstract

PurposeResearch on corporate social responsibility (CSR) within the real estate sector is limited, and the precise workings of its impact are still unclear. Under the premise that real estate enterprises face environmental uncertainty in China, this study explored the impact of CSR on real estate enterprise value.Design/methodology/approachTo investigate the impact of CSR on enterprise value, we studied 111 real estate enterprises with A-shares listed on Shanghai and Shenzhen stock exchanges from 2010 to 2020, and performed empirical tests to determine the moderating effect of environmental uncertainty on this relationship.Findings(1) The fulfillment of corporate social responsibility (CSR) significantly influences the value of real estate enterprises. A sub-dimensional analysis reveals that fulfilling stakeholder and social welfare responsibilities within CSR positively impacts enterprise value, whereas environmental responsibility does not exert a notable effect. (2) The uncertainty associated with environmental changes profoundly affects the relationship between CSR and the value of real estate enterprises. More precisely, as environmental uncertainty increases, it amplifies the beneficial impact of CSR on enterprise value.Practical implicationsThese findings are valuable for real estate enterprises as they navigate the transition towards sustainable development, and they also provide insight for the government in formulating policies aimed at regulating the real estate sector.Originality/valueThis study complements the existing discussion and research on corporate social responsibility (CSR) and enterprise value in the real estate industry, while elucidating the underlying mechanism of how environmental uncertainty mediates the relationship between the two.