Housing demolition attention, social responsibility pressure of manager and corporate value

Abstract

Purpose This study aims to examine whether corporate stconcerns on social responsibility issues pressurize corporate managers to act in a socially responsible way and how this affects corporate value. Design/methodology/approach This study follows previous studies such as Wu et al. (2008) and Jiang and Huang (2011) in using the research model. Findings The analysis shows that in regions where large attention paid to demolitions, corporate managers are under great pressure from corporate stakeholders and they thus act in more socially responsible ways; this, in turn, results in higher corporate values. Furthermore, in regions in which demolition events attract more attention, the increase in corporate value is relatively small for state-owned enterprises and unprofitable listed enterprises. Originality/value The findings demonstrate that internet governance heightens corporate stakeholders’ awareness of social responsibility, and this leads to pressure on corporate relative behaviors to satisfy the requests of corporate stakeholders, leading to an increase in corporate value and improvement in social welfare.