Minority Shareholder Activism and Corporate Social Responsibility

This study aimed to examine the effect of minority shareholder activism on corporate social responsibility (CSR) in China. Using a unique dataset of minority shareholder online voting information, we found a significant negative association between minority shareholders’ online voting participation and CSR level. Further investigation showed that this negative relationship was more pronounced for state-owned firms and firms in the regions with a higher marketization level. Our findings are robust to alternative measures of minority shareholder activism and model specifications. Our study provides direct evidence that the activism of minority shareholders has an effect on CSR levels. These findings have important implications for governments and minority shareholders in emerging economies.