Conference Paper/Proceeding/Abstract 260 views
Firm Risk and Values Resonance with Local Governments
Zaixin Chen 
,
Huiqun Feng,
Pengfei Gao ,
Hafiz Hoque ,
Mengjia Li
,
Huiqun Feng,
Pengfei Gao ,
Hafiz Hoque ,
Mengjia Li
Cardiff Business School Seminar, BAFA 2023 Annual Conference, BFWG Annual Conference, Loughborough Business School PGR Workshop
Swansea University Authors:
Pengfei Gao , Hafiz Hoque
Abstract
This study investigates whether values resonance, the rhetorical alignment between corporate social responsibility (CSR) disclosures and local government narratives, mitigates firm risk among non-state-owned enterprises (non-SOEs) in China. Drawing on legitimacy theory, similarity-attraction theory,...
| Abstract: |
This study investigates whether values resonance, the rhetorical alignment between corporate social responsibility (CSR) disclosures and local government narratives, mitigates firm risk among non-state-owned enterprises (non-SOEs) in China. Drawing on legitimacy theory, similarity-attraction theory, and impression management, we argue that linguistic conformity with local political rhetoric enhances perceived legitimacy and stakeholder trust. Using textual analysis of CSR reports and provincial government work reports from 2010-2022, we find that higher values resonance significantly reduces firm-specific risk. Mechanism tests suggest this effect operates through enhanced corporate reputation and more stable relationships with key stakeholders. The effect is stronger among financially constrained firms, during periods of high policy uncertainty, and when CSR disclosure is voluntary. Results remain robust to alternative risk measures, endogeneity checks, and political connection proxies. This study highlights how non-market, discourse-based strategies help firms navigate institutional uncertainty in politically embedded environments. |
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| College: |
Faculty of Humanities and Social Sciences |