Empirical evidence demonstrates internal control strengthens corporate social responsibility, highlighting ownership concentration's role.
This paper investigates whether internal control improves corporate social responsibility (CSR) outcomes and whether ownership concentration moderates this link for China’s agriculture, forestry, animal husbandry, and fishery (AFAHF) listed firms. Using 330 firm-year observations (2010-2021) and firm/year fixed-effects regressions, we find a positive and statistically significant association between internal control and CSR (5% level). Ownership concentration further strengthens this relationship, with the interaction term also significant at the 5% level. Robustness checks using an ordinal internal control measure and adding additional controls yield consistent results. These findings highlight a governance pathway through which stronger internal control supports CSR implementation in resource-based sectors and provide practical implications for regulators and firms seeking to enhance sustainable development in the AFAHF sectors.
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Wang et al. (2025) studied this question.
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