Going Out by Doing Good : The Effect of Mandatory CSR Disclosure on Outward FDI of Chinese Firms

This paper investigates the effect of mandatory corporate social responsibility (CSR) disclosure on outward foreign direct investment (OFDI) of Chinese listed companies. Employing the propensity score matching (PSM) and difference-in-differences (DID) methods to alleviate endogeneity concerns, we find that mandatory CSR disclosure firms are more likely to undertake OFDI and have a larger number of OFDI projects, especially in developed economies. Exploring the underlying mechanisms, we find that disclosing CSR information can facilitate a firm's OFDI by enhancing innovation capabilities, alleviating financial constraints, and reducing its negative externality on environment