Anchoring effect in corporate social behaviors: evidence from donations and pollution

Purpose This paper examines the role of the anchoring effect, including internal anchor formed by prior experience or external anchor produced by similar external practices of industrial competitors and investor networks in the decision-making of corporate social behaviors (CSBs). Design/methodology/approach This paper sets corporate donations and pollution as examples of CSBs, and conducts an empirical study through the data of A-share listed companies between 2010 and 2020 in China. Findings This paper found that both internal and external anchoring effects exist in CSBs. In addition, when internal and external anchors appear simultaneously, they will have the same intensity and promote each other. Originality/value This paper not only adds to the literature on the motives for CSBs and links cognitive and social psychology with strategic decisions but also has managerial implications for firms and managers.