Impact of Corporate Social Responsibility on Stock Price Crash Risk. The moderating Role of Culture and Country of Study
Abstract
This aims to explore the moderating effect of country of study and cultural dimensions on the relationship between Corporate Social Responsibility (CSR) and Stock Price Crash Risk (SPCR). In this study we used meta-analysis technique from 40 effect size paper which published between 1997 and 2024. The aim of this study was to explore previous studies findings about impact of CSR and SPCR. The meta-analysis technique discloses the significant negative relationship between CSR and SPCR. Furthermore, this study determined country of study and cultural dimension that moderate the relationship between CSR and SPCR. Specifically, dimension of culture like long term orientation (LTO) has a positive moderation effect, showing that CSR practices are more productive in transferring stock price crash risk in these cultural contexts. On the other hand, cultures with indulgence and high uncertainty avoidance showed negative moderation effects, which shows that the relationship between CSR and SPCR is disabled in these cultural conditions. It is important that this study did not shed light on the endogeneity issue between CSR and SPCR because of small debates about this issue in the previous studies in this meta-analysis. To the best knowledge of author this is the first meta-analysis research which is examining moderating role of country of study and cultural dimensions affecting the relationship between CSR and SPCR. The study provides new knowledge on the factors of stock price crash risk, contributing valuable new suggestion for stakeholders of the company in contexts of country and cultural conditions.
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